IBM reportedly laying off up to 25% of hardware/chip division

|By:, SA News Editor

A source tells CNET IBM's (IBM +0.3%) layoffs involve up to 25% of employees in its hardware/chip unit (i.e. the Systems & Technology Group).

The division saw a 26% Y/Y sales drop in Q4, bleeding share to rivals ranging from from H-P to EMC to TSMC. Since then, IBM has announced it's selling its x86 server business (sales -16% in Q4) to Lenovo for $3.2B, and the WSJ has reported Big Blue is thinking of unloading its chip manufacturing ops (believed to be losing money).

IBM expects to record a $1B workforce rebalancing charge in Q1.

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