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IBM confirms North America layoffs

Latest round of cuts target IBM's global business-services unit, say reports

Amid reports that it is moving thousands of jobs from the U.S. to India, IBM said Thursday it is notifying employees that some jobs are being eliminated.

“This is a North American action. We are not communicating locations or the number of jobs as a result of this action,” IBM said in a statement on Thursday.

The Wall Street Journal reported that IBM is planning to lay off about 5,000 U.S. employees, with many of the jobs being transferred to India. It cited people familiar with the situation.

The latest round of cuts target the company’s global business-services unit, according to reports.

India has emerged as key location for IBM and other multinational services companies for the global delivery of services. IBM is estimated to have over 80,000 staff in services delivery and sales in India.

IBM has been steadily building its work force in India and other locations while reducing the number of workers based in the U.S., the Journal report said.

IBM said that it anticipates that some employees will find other positions within IBM. Those who leave the company will receive separation benefits.