IBM to cut 1,000 jobs at Hungarian unit

IBM is to cut 1,000 jobs at its Hungarian hard disk drive unit IBM Storage Products Hungary by the end of September.

Of the 1,000 jobs from a 5,000 strong workforce, 850 are contractors.

IBM's HDD operations are currently in the process of being sold to Hitachi, which is set to pay $2.05 billion for an initial 70% stake.

This will rise to 100% over three years.

The Hitachi deal has not yet closed, but when it does some 18,000 staff will transfer to the new Hitachi-led HDD venture.