The newspaper said an e-mail reply it received from IBM's China office said some level of "workforce remix is a constant requirement for our business." The report said while IBM did not give any specify figures, a local Chinese news site suggested there could be at least 500 staff cuts on the mainland.
The Armonk, N.Y., company had lower-than-expected results in the first quarter and there have been reports since then about job cuts, mostly outside the United States.
China Daily said the news site reported those affected can expect about $2,270 for every year of service as compensation.
Company executives had earlier indicated expenses needed to be cut to maintain profits, the report said.
The report said IBM has been seeking to increase its software and information technology consulting businesses in China as hardware demand in the nation weakens.
Tesla could face sales ban in Michigan
Twitpic to shut down after failed acquisition