During IBM's latest conference call reporting its financial performance for the fourth quarter of 2022, the company announced that its operating profits and revenue met analysts' expectations. The company also reported solid growth in its cloud, artificial intelligence, and data analysis software business. However,it also said that it will let go of 3,900 workers.
This number is equivalent to about 1.5% of IBM's global workforce. According to the company, the job cuts is a result of earlier asset sales instead of a weakness in its business. In 2021, IBM spun off its managed infrastructure services business Kyndryl into a separate company. More recently, the firm sold off its Watson Health analytics business to a private equity firm.
IBM will spend about $300 million in the first quarter of this year to pay for the severance packages of those who will be let go. Despite this development, the company still expects to hire in "higher-growth" areas.
IBM will join the wave of many technology companies that laid off its employees. In November of last year, Twitter significantly shed its workforce after it was acquired by Tesla CEO Elon Musk. A few days later, Meta announced the layoff of over 11,000 employees.
A few months after, Microsoft and Amazon also announced job cuts as a part of broader cost-cutting measures. Finally, Google and Spotify also bade goodbye to a significant portion of their staff.
Source: Bloomberg (paywall)
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