IBM Denies Rumors That It’s Sacking 26 percent Of Its Workforce

IBM Denies Rumors That It's Sacking 26 percent Of Its Workforce

IBM Denies Mass Layoff Rumors, calling it “ridiculous” and “baseless,” IBM on Monday dismissed a report that said the technology giant plans to lay off 1 in 4 of its workers, or 100,000 people.

“IBM does not comment on rumours, even ridiculous or baseless ones,” IBM said in an email to Reuters. “If anyone had checked information readily available from our public earnings statements, or had simply asked us, they would know that IBM has already announced the company has just taken a $600-million charge for workforce rebalancing. This equates to several thousand people, a small fraction of what’s been reported.”

Forbes journalist Robert X. Cringely first reported the layoffs, which are apparently part of a major company reorganization under the moniker Project Chrome. Cringely suggested they will mostly be in the U.S.-based mainframe and storage divisions.

The fact that IBM would be making layoffs was noted last week when IBM reported its 2014 earnings and gave guidance for the coming year. At that point CFO Martin Schroeter confirmed that there would be cuts for 2015—but said these would smaller than the roughly 13,000 people who were handed a pink slip in 2014.

IBM’s biggest ever round of layoffs took place in 1993 when Big Blue dispensed with 60,000 people, in what remains a record number of corporate redundancies.