1,135 employees and an unknown number of contractors have been told by IBM that their jobs are going to be cut, reported The Inquirer.
As well as the numerous home-based employees that face redundancy, the bulk of the threatened positions are in sites in New York, Connecticut, Colorado and Kentucky.
In April Mark Loughridge, chief financial officer at IBM, warned that downsizing would occur this quarter.
"We’re putting in place a series of actions to address our US cost base, including a basic focus on resource and cost management disciplines and re-balancing of resources as we execute our global resource strategy," he said.
According to its annual report, IBM had 355,766 employees worldwide at the end of 2006. The company announced on Monday a $2.9m project to hire 500 people for a new customer call centre based in Indiana by 2010.