IBM to cut 3,900 jobs amid broader tech slowdown: Report
January 26, 2023  09:46
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IBM Corp has joined the wave of companies conducting layoffs, saying it would cut about 3,900 jobs, the Wall Street Journal said.

The job cuts will stem from Kyndryl Holdings, the IT services business that IBM spun off last year, and its healthcare divestiture, from which the company will incur about a USD 300 million charge, an IBM spokesman told WSJ.

The layoffs would amount to a 1.4 per cent reduction from its headcount of 2,80,000, according to the IBM's latest annual report.

The information technology company posted flat sales in the fourth quarter after the strong US dollar hurt its reported revenue by more than USD 1 billion, according to WSJ.

IBM posted net income of USD 2.71 billion, or USD 2.96 a share, for the fourth quarter ended December 31, compared with USD 2.33 billion, or USD 2.57 a share, a year earlier. Adjusted earnings were USD 3.60 a share, slightly above analysts' estimates of USD 3.59 a share, according to the WSJ report. Revenue edged down to USD 16.69 billion from USD 16.70 billion a year earlier. Analysts polled by FactSet expected USD 16.15 billion.

Revenue for several of the Armonk, New York-based company's segments grew compared with the prior-year period. According to WSJ, software gained 2.8 per cent to USD 7.3 billion; consulting added 0.5 per cent to USD 4.8 billion; and infrastructure rose 1.6 per cent to USD 4.5 billion. IBM's financing segment slid 0.4 per cent to USD 200 million from a year earlier.
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