IBM lays off 1,315 workers, union says

The world's largest technology company also released an unknown number of contractors, and job cuts will continue, Alliance@IBM said on its Web site.

An IBM spokesperson could not immediately be reached for confirmation.

The company said at an investors' conference last month that it would reduce costs in the U.S. and noted a slowdown in its U.S. enterprise business. IBM reported its net profit rose 8 percent year-over-year in the first quarter to US$1.8 billion.

The layoffs come just a day after IBM announced plans to open a new call center in Daleville, Indiana that will eventually create 500 jobs. The IBM call center investment was reportedly made in return for a 10-year, $1.16 billion contract with Indiana's Family and Social Services Administration.

IBM ended last year with 355,766 employees worldwide, up from 329,373 in 2005, according to its annual report.