International Business Machines said it plans to cut up to 13,000 jobs, or 4 per cent of its work force, as part of a cost-cutting move targeting Europe, where IBM's management structure has remained the same for the last 60 years.

IBM's business in Western Europe has been flagging, so the company has been reorganising its administrative networks in Britain, France, Germany and Italy.

The world's largest computer company said it would 'cut bureaucracy and scale back in slower-growth countries'.

IBM, based in Armonk, New York, employed 329,000 staff worldwide in December, the last time the company disclosed its total work-force figures. About 100,000 of those jobs were located in Europe.

On Sunday, IBM completed the sale of its PC business to Lenovo Group of China for $152.2 million resulting in the transfer of another 10,000 IBM PC employees to Lenovo's payroll.

Amicus, one of Britain's largest unions, fears that 1,500 of the UK's 21,000 permanent staff,would be first in firing line.

IBM chief financial officer Mark Loughridge claimed the overhaul was not a response to results last month, when IBM missed first-quarter earnings estimates by five cents a share.

IBM shares rose more than 1 percent in after-hours trading to $78.00, up 92 cents from their regular session closing price.