Lenovo confirms that it is cutting jobs in its x86 server business with 235 people being told Monday they were being laid off.

Of those, 155 are based in the Triangle, Lenovo corporate spokesperson Ray Gorman said in an interview.

Some contract workers also were affected, but Gorman would not disclose a specific number.

Many of those let go in what Gorman called a “resource action” are former IBM employees. Resource action is a term used at IBM for layoffs and reorganizations.

Lenovo only cut jobs in the U.S.,he added. The affected workers are eligible for severance and also can apply for open jobs within the company, Gorman said.

The cuts were made because the “initial business results had fallen below expectations,” Gorman said, citing the first sales results from the deal that made IBM’s x86 server business part of Lenovo last fall.

Gorman described competition in the server market as “fierce.” He said the cuts were a “short-term” move to make the group “more efficient.”

The Enterprise Business Group is built largely around the IBM x86 server business Lenovo acquired last fall for some $2 billion. Lenovo is the No. 1 seller of PCs and ranks No. 3 in server sales.

Some 1,300 IBMers based in the Triangle were transferred to Lenovo as part of that deal.

Lenovo “committed” to Triangle

Gorman stressed that Lenovo “remains absolutely committed to the Triangle and North Carolina,” noting that the company has “doubled the number of jobs” in the region since 2008. he said the goal is to position the organization to be more competitive and at some point in the future add jobs.

“It was a difficult decision,” he added, “but one that was necessary.”

WRAL TechWire reported early Monday that cuts were going to be made, citing sources.

Workers said employees were told last week that those being let go would be told Monday.

According to these sources, the primary targets of the job cuts would be former IBM employees. Gorman did not specify numbers but said “you can reasonably assume” that many of those laid off were former IBMers.

“This also involved some Lenovo employees,” he added, noting workers who had been with Lenovo prior to the IBM deal.

The servers are used for a wide variety of functions ranging from supporting corporate networks and cloud computing.

“Employees from System X to be RAed by Lenovo on Monday morning,” wrote one former IBMer in an email who expects to be among those let go.

“KPIs [key performance indicators] were discussed this past Friday to let employees digest the bad news over Mother’s Day weekend.

“Those that survive will stay to help the transition, then let them go as well. Good luck!!!

“Soon to be RAed, meeting at 9:30AM.”

“RAed” refers to “resource action.”

Source: Former IBMers targeted

Another source noted that those targeted to be laid off “are the people that came over from IBM in October.”

The source pointed out that “every conference room is reserved the entire day for executives” on Monday. The meeting room reservation notices were posted Thursday, the source said.

Two different managers told one employee that lists of who would be cut were assembled and ready last week.

The layoffs actually had been expected to take place in March.

“They are tight-lipped as usual,” a source noted in March, referring to Lenovo executives.

“No one knows how many will be cut or even how they are making that determination.

“The morale is horrible, but at least the wait is almost over.”

WRAL TechWire also was told about layoffs that occurred within months of the deal closing and again in December.

Lenovo has denied making layoffs

Twice in recent weeks, Lenovo told WRAL TechWire that the company had no layoffs to report and that it would not comment on rumors.

In January, Lenovo offered voluntary buyouts to some employees in order to “remain competitive.”

Lenovo acquired IBM’s server business for some $2 billion last year. The deal closed in September.

All IBM employees involved in the deal were told at the time by Lenovo that they would be offered jobs.

However, when the deal closed Lenovo executives said that cuts might be made.

More space added

To prepare for the absorption of IBM workers, Lenovo leased additional office space in RTP not far from its global executive headquarters in Morrisville. Lenovo also recently opened a new customer service center.

Lenovo bought the business unit in a bid to become a bigger play in the server market where previously it had sold Lenovo-branded gear. The deal did lift Lenovo to No. 3 in server sales behind HP and Dell.

In March, industry statistics showed that Lenovo’s server sales topped $1.1 billion for the fourth quarter of 2014, a jump of 250 percent.

Lenovo also acquired Motorola Mobility from Google last year in a deal that has driven up its global share of smartphone sales.

The two acquisitions were part of Chair and CEO Yang Yuanqing’s strategy to diversify the company away from a near total reliance on PC sales.