IBM has folded its consumer PC division into its Personal Systems Group.
Employees in the U.S. this week were told that IBM was restructuring its PC groups by integrating the consumer division into PSG, says Frank Hein, IBM communications manager in France. Hein declined to elaborate on the reasons for the move.
IBM's PC group posted a loss of nearly $1 billion last year, however, the elimination of a separate consumer PC division doesn't come as a surprise to analysts.
"IBM's strengths lie in its corporate divisions. It has never been that successful in the PC consumer market," says Andy Brown, a research analyst with International Data Corp. in London.
Though layoffs are expected as a result of the restructure, IBM would not confirm any plans for this or speculate on how many people would be affected.
"Any time there is a rationalization in business operations, layoffs are usually inevitable," Brown says.
IBM, in Armonk, N.Y., can be reached at 914-765-1900 or http://www.ibm.com.
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