IBM will cut 3,900 jobs

Armonk’s company did not specifically mention those job cuts on Wednesday. nmann77 /

The job cuts, which correspond to 1% of the IT group’s workforce, are linked to its strategic reorientation.

The IT group IBM will cut some 3,900 jobs, or just over 1% of its workforce, as part of a layoff plan linked to its strategic reorientation, a source familiar with the matter told AFP on Wednesday January 25. the wall street journal give the same numbers.

The Armonk (New York State) company did not expressly mention these job cuts either in its results press release, published on Wednesday, or during the conference call presenting its quarterly accounts. The leaders only mentioned an exceptional charge of 300 million dollars, which corresponds, according to the source, to the cost of the social plan. This cost “is entirely related to the spin-off of Kyndryl and the disposal of the health business”a spokesperson told AFP. “These measures were not taken based on 2022 performance or projections for 2023”he specified.

In 2021, IBM separated from the rest of the group its information systems consulting and maintenance activities, one of the historical branches of the company but less buoyant than remote computing (cloud), in which it invested. massively. The new entity resulting from this split was named Kyndryl and went public in November 2021. As for the activity relating to the collection and analysis of data in the medical field, which was part of the Watson Health division, it was sold in early 2022 to the investment company Francisco Partners. If the positions concerned by the social plan had remained in the bosom of IBM after these two separations, these are functions related to these two activities, according to the source.

70,000 jobs destroyed in the Tech sector

IBM on Wednesday released fourth-quarter revenue slightly above expectations and net profit in line with analysts’ forecasts. During the earnings conference call, Chief Financial Officer James Kavanaugh said he was “careful” to anticipate growth at the bottom of the group’s usual range. In electronic trading after the close of Wall Street, the title IBM lost just under 2%.

Amazon, Meta, Microsoft and Alphabet (Google) have all recently launched far-reaching social plans, after ramping up hiring during the pandemic to meet increased demand for digital services. Twitter also fired with a bang. In all, nearly 70,000 jobs were destroyed between the end of last year and the beginning of this year in the American Tech sector.

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