Red Hat will lay off nearly 4 percent of its global workforce, or about 760 employees, the media reported.
The North Carolina-based software major has about 19,000 employees across the world.
Red Hat CEO Matt Hicks said this decision is now appropriate to ensure Red Hat’s ability to compete in a new environment.
IBM acquired Red Hat in 2019 for nearly $34 billion in one of the largest software acquisitions in history.
Matt Hicks, in an email to employees, said the cuts will focus on general and administrative positions, and not affect positions directing selling to customers or building out products.
Employees in some countries would be notified of layoffs on Monday, while others would be told over the course of the current fiscal quarter.
Earlier this year, IBM confirmed it planned to lay off around 3,900 employees from its global 260,000 workforce.
The IBM layoffs are a result of the spinoff of IT infrastructure services provider Kyndryl business and part of the AI unit called Watson Health.
The layoffs were likely to cause a charge of $300 million in the January-March period to the company, according to IBM Chief Financial Officer James Kavanaugh.