IBM has today announced job cuts in its North America operations, even though its profits have steadily risen.

IBM would not confirm numbers or exact locations but it is being widely reported that there will be 5,000 job losses.

A spokesperson from IBM said: "On March 26, we notified some employees to inform them that some jobs were being eliminated. IBM continuously evaluates its mix of skills and resources throughout the year, and makes changes as needed. Managing resources in this way keeps us competitive, while adapting to the evolving needs of our clients."

"We anticipate that some employees will find other positions within IBM, and we're helping them in that effort. Those employees who leave IBM will receive separation benefits."

In a recent announcement, IBM said it had a 12 per cent rise in its fourth-quarter profits, which may make these job cuts controversial.

The cuts also come just a week after it showed an interest in buying Sun Microsystems for a reported $6.5 billion (4.6 billion).