IBM Cuts 300 Systems Jobs

IBM Corp. cut 300 jobs in its computer systems division Tuesday, about 2 percent of the unit's overall work force. The cuts affect the systems division's development and finance groups and mainly will take place in San Jose, Calif., IBM spokesman Jim Larkin said. He said the layoffs were necessary for IBM "to rebalance skills" and remain competitive.

IBM's systems group, which makes the high-powered servers that perform corporate computing tasks, has 13,000 employees. IBM has more than 315,000 people overall.

Big Blue has made several similar-sized cuts in its software unit in recent months, including 300 layoffs this month. Even so, IBM executives have said the company is still hiring in certain areas, and plans to add 15,000 jobs overall in 2004.