IBM's 'Transformation': More Layoffs, Despite Earnings Surge

When a company reports strong end-of-the-year earnings, workers might expect some positive news -- maybe a bonus, even. But that's not what happened at IBM. On Wednesday, the same day the Armonk, N.Y.-based technology corporation announced its net income "surge" of 6 percent for the fourth quarter, reports came out that IBM was planning layoffs.

Why would workers be laid off when total net income was $5.8 billion, better than what most analysts expected?