IBM will remove over a quarter of its workforce in the upcoming month, in the single largest purge of employees ever hitting 118,000 workers.
Under the name 'Project Chrome', IBM looks to remove a huge amount of excess from the company, allowing it to potentially grow after 11 straight quarters of revenue decline.
IBM already holds the layoff record for its 1993 removal of 60,000 employees, but this new layoff announcement overshadows IBM's problems 20 years ago.
Most of the employees losing their jobs will be in America, which could have a major effect on employment in the country if jobs are not available in the ex-employee's fields.
Companies like Facebook, Google and Microsoft are a few blocks away for developers, but IBM is full of business and industry employees who may find getting a new job hard.
The workforce will receive a call from the manager alongside a package sometime in February. IBM has not made any formal statement on the removal of 26 per cent of its workforce, but it will undoubtedly have to face the fire head on in the next month.
Removing workforce in a time of decline is one of the worst things, but at IBM it could have a knock-on effect of safe employees feeling like their jobs could go at any moment, forcing them to look for safer opportunities.
It would also make it near impossible for IBM to attract talent to the company, when it is known for huge workforce purges every few decades.
IBM has been focused on cloud architecture and other new elements of enterprise technology, but the overzealous attitude of IBM in the cloud and enterprise market might have cost them in the long run.
Ever since Microsoft, Amazon and Google started getting involved in enterprise, IBM's revenue has continued to drop, and something needed to change. The real question is whether the removal of 26 per cent of all workers is the right change.