IBM announces 3,900 job cuts
Technology
Ensuing layoffs will result in $300 million charge between January and March, IBM
(Reuters) - IBM Corp announced 3,900 job cuts as a result of asset sales and reported flat fourth-quarter revenue as a result of weak demand for its consulting services.
In order to concentrate on its hybrid-cloud Big Blue broke off its sizable and sluggish managed infrastructure business in late 2021, now named Kyndryl. Additionally, it separated Watson Health s AI business from its healthcare data and analytics division.
The ensuing layoffs will result in a $300 million charge between January and March, according to IBM. However, IBM would continue to employ in emphasis areas, according to the company s chief financial officer James Kavanaugh.
The company also predicted yearly sales growth in the mid-single digits in constant currency terms, which is less than the 12 percent it recorded last year as client spending has become more conservative in the face of escalating recession worries.
In the three months that ended on December 31, its hybrid cloud sales increased two percent to $6.3 billion. Refinitiv reports that total revenue for the quarter was $16.69 billion compared to analysts projections of $16.40 billion.
