January 30, 2023

IBM layoffs: Company announces 3,900 job cuts as it reports Q4 earnings

2 min read

Hong Kong

IBM has become the latest tech company to cut thousands of jobs, with 3,900 positions, or 1.5% of its global workforce, expected to be eliminated.

The company announced the cuts on Wednesday, saying they were related to previously announced spin-offs and the sale of two business units. The move will cost IBM.

About $300 million this quarter, a spokeswoman confirmed.

The affected units are Kyndryl, an IT infrastructure services business that was officially Separate from IBM In November, and IBM’s healthcare analytics business, which an investment firm is pursuing. to gain.

The news comes as other major tech companies slash their workforces worldwide in response to the gloom. Global Economic Perspectives. Last week, Google

Parents Alphabet and Microsoft

Announced everyone’s dismissal. 12,000 And 10,000 workersrespectively

It followed similar plans outlined by Amazon.

And to the sales force Ax on thousands of jobswith More than 18,000 employees Impressed on the e-commerce giant alone.

An IBM spokesperson told CNN on Wednesday that the company’s cuts were solely related to the restructuring of the two affected business units, “not an action based on 2022 performance or 2023 expectations.”

The New York-based company also reported mixed earnings on Wednesday, with revenue slightly higher than expected but operating profit and free cash flow falling short of expectations.

IBM shares fell 2% in after-hours trading overnight.

Asked about the outlook for enterprise tech demand this year, IBM CEO Arvind Krishna said most of the company’s clients are confident they will “emerge strongly.”

We see them doubling down “despite various headwinds in 2023,” he told analysts on a conference call.

Krishna also noted that while other tech companies have made more pessimistic forecasts recently, “the reason we’re staying in that optimistic frame of mind is that [is]We have no consumer business.

“So I think, as a result, we’re looking at a slightly different subset of the economy than people who might have direct contact with consumer businesses,” he added.

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