Report: Major IBM job cuts to start tomorrow

|By:, SA News Editor

Citing sources within the company, IBM (IBM +0.1%) workers group Alliance@IBM  says the IT giant will begin notifying employees affected by a major round of job cuts tomorrow.

Big Blue has already said it expects to record a $1B workforce rebalancing charge in Q1, as it tries to improve its cost structure in the face of ongoing revenue declines.

Bernstein's Toni Sacconaghi thinks it costs IBM ~$70K, on average, to let an employee go. He previously forecast at least 13K of the company's 434K employees could be laid off.

IBM, still maintaining a 2015 EPS goal of $20, has promised to keep 3,100 jobs in its home state of New York through 2016. That's up from a prior pledge of 2,350.