The ranks of IBM (NYSE: IBM) workers in Western Europe will be thinned out through layoffs in coming months, the United Kingdom’s Observer reported Sunday.

will be transferred to “cheaper outlets” in Eastern Europe, China, India and South America, the newspaper said.

For example, according to the Observer, IBM workers in India earn some $5,000 a year compared to $50,000 or more in the U.S.

Some 20,000 people work for IBM in the U.K., and another 21,000 handle IBM operations in India.

An IBM spokesperson declined comment on the rumors.

IBM employs some 11,000 people at its campus in the RTP area, but hundreds of workers have been laid off in recent months.

Alliance@IBM, the union seeking to represent IBM workers, told Local Tech Wire recently that it expects another major round of layoffs among U.S. workers in June.