Tech giant IBM is laying off thousands of employees across many locations in the United States, according to a report by ‘The Register‘. IBM’s job cuts involve a significant downsizing of its Cloud Classic division, the report quoted the sources familiar with the matter.

The report quoted the sources as saying that the job cuts in Cloud Classic, which was formed after IBM bought SoftLayer in 2013, are part of a formal restructuring effort.

“It’s a resource action. I don’t know how many people are in IaaS classic. They don’t typically make that information easy to find. What I can say is that they have been making a lot of changes to shift employment to India as much as possible,” the report quoted the source.

A former employee of the IBM, who was recently laid off, told ‘The Register’ that about 10% of the company’s cloud division was affected by the job cuts.

IBM Layoffs: Impacted Locations And Employees

According to the report, Raleigh, North Carolina, New York City and State, Dallas, Texas, and California are the most impacted areas from the layoffs. However, the exact number of employees, that are fired, remains unknown.

While talking, on the number of employees impacted, the source told ‘The Register‘, “Concrete numbers are being kept private. It is in the thousands.”

According to the report, workers from various departments have been impacted by the layoffs. The impacted departments include consulting, corporate social responsibility, cloud infrastructure, sales, and internal IT systems.

Several reports also suggest that IBM’s Marketing and Communications group has also experienced layoffs. Moreover, these were disclosed during an internal call by Senior Vice President Jonathan Adashek.