IBM has hit back at reports that it is preparing to lay off 118,000 members of staff, describing the rumours as "baseless".
A report on Forbes claimed that as much as 26 percent of the company will be gone by the end of February in an effort to cut costs.
Most jobs will be lost in the US, but almost all regions of the business are expected to lose some staff, the report says. The reorganisation is reportedly being referred to as 'Project Chrome' within IBM.
However, IBM issued a strongly worded statement in response, claiming that it is not planning any major job cuts.
"If anyone had checked information readily available from our public earnings statements, or had simply asked us, they would know that IBM has just taken a $600m charge for workforce rebalancing. This equates to several thousand people, a mere fraction of what's been reported," the firm said.
"Last year, IBM hired 45,000 people, and the company currently has about 15,000 job openings around the world for new skills in growth areas such as cloud, analytics, security and social and mobile technologies.
Last week IBM reported fourth-quarter results for 2014 of $24.1bn, a 12 percent decrease on the same period last year. Revenues for the full year were $92.8bn, a decrease of six percent on 2013.
The cuts, if they come, will hit IBM hard, with one in four employees facing the axe. The need for such drastic action underlines how hard IBM has found the switch from services and hardware to focusing on the cloud for growth.
IBM has made progress in the cloud thanks to the $2bn acquisition of SoftLayer and new datacentres in markets around the world, including the UK. In particular, IBM revealed that cloud revenues rose 60 percent in 2014 to $7bn.
However, this is not enough to replace lost earnings from the company's traditional areas of strength.
Hardware revenue for Q4 2014 was down 39 percent to $2.4bn, and software was down seven percent to $7.6bn. Services were down eight percent to $13.5bn.
IBM has also sought partnerships with other major firms, notably Apple, in a bid to expand its offerings to businesses, but this is clearly not having the necessary impact to stave off the threat of job cuts.
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