IBM plans to lay off 3,900 employees. The job cuts in the first quarter of 2023 are expected to cost the US IT company $300 million. This will happen despite the record increase in revenues. This is another of the companies from the technology sector that announced layoffs.
As explained by James Kavanugh, IBM’s chief financial officer, the layoffs will be related to the separation of the Kyndryl and Watson Health businesses. He estimates that the layoffs will cost the company $300 million in the first quarter of this year.
At the same time, Kavanugh told Reuters that the company remains “committed to hiring employees for customer-centric research and development.”
IBM cash flow in 2022 amounted to USD 9.3 billion, which is below the assumed USD 10 billion. This year, they are expected to amount to USD 10.5 billion. In 2022, IBM recorded revenue growth of 5.5 percent, which is the highest result in a decade.
Layoffs in tech companies
Last week, Google announced layoffs. A total of 12,000 people, or six percent of all employees, are expected to lose their jobs. Earlier, other tech companies, including Amazon and Meta (formerly Facebook), also announced job cuts.
British Sky News reported that Microsoft Corporation plans to cut about five percent of jobs. About 11,000 people are to be made redundant.
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