IBM is the latest in tech to lay off workers

The big picture: Layoffs in tech have already hit hard in digital media, startups and the gig economy. IBM's move is a sign that the downturn won't spare the large enterprise sector, either.

• Hewlett-Packard Enterprise also foreshadowed job cuts in giving guidance as part of its earnings report on Thursday.

Our thought bubble: IBM's global consulting business is particularly vulnerable to the business downturn. Many companies in times of austerity will try to avoid laying off their own workers by instead cutting back on the kind of big upgrades and reorganizations that IBM specializes in managing.

What they're saying: "IBM’s work in a highly competitive marketplace requires flexibility to constantly remix to high-value skills, and our workforce decisions are made in the long-term interests of our business," said Edward Barbini, IBM VP of corporate communications, adding that the company would subsidize medical coverage for laid-off workers through June 2021.