After disappointing Q1 results for its Americas operations and a related warning from CFO Mark Loughridge, IBM is reported to have started laying off 1 135 employees and an undetermined number of contractors at sites in New York, Connecticut, Colorado and Kentucky.

While most of the company's operations showed healthy growth worldwide – Germany at 10%, for example – revenues in the Americas for Q1 grew only 1%.
This resulted in Loughridge issuing a warning on future operations in this region during IBM's earnings conference.
"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 last week.
It hasn't taken long for the company to initiate these actions.
At the end of 2006, IBM had 355 766 employees worldwide. IBM South Africa, considered one of the rising stars within the group with healthy double-digit growth for a number of consecutive quarters, is not expected to be affected by the layoff initiatives.