IBM will slash some 3,900 jobs, barely multiple p.c of its workforce, associated to companies it has divested, a supply near the matter informed AFP on Wednesday.
The computing firm based mostly in New York state didn’t speak of job cuts in its quarterly earnings report printed Wednesday, nevertheless, nor in a name with analysts to debate the monetary outcomes.
IBM mentioned it will take a one-time $300 million cost in its first quarter this yr, which the supply mentioned was associated to the layoffs.
This value is “entirely related” to the spin-off of Kyndryl and the disposal of well being information and evaluation companies, an IBM spokesperson informed AFP.
“It is not an action based on 2022 performance or 2023 expectations,” the spokesperson added.
The greater than century outdated know-how agency reported revenue of $2.9 billion within the closing three months of final yr, some 17 p.c larger than the identical interval in 2021 regardless of income remaining flat at $16.7 billion.
“Clients in all geographies increasingly embraced our hybrid cloud and AI solutions as technology remains a differentiating force in today’s business environment,” IBM chief govt officer Arvind Krishna mentioned in an earnings launch.
The firm based in 1911 introduced late final yr that it’s going to make investments $20 billion in semiconductors, quantum computing and different cutting-edge know-how in New York state.
Krishna unveiled the spending, which can happen over a decade, in a speech alongside US President Joe Biden within the tech big’s Poughkeepsie facility.
Biden hailed the pledge from the “iconic American company” as one other signal that his technique of rebuilding the US modern edge is working.
The Democratic president has made a precedence of encouraging progress in high-tech manufacturing, hoping to rebuild home provide chains in essential parts reminiscent of microchips that for years have been left to international firms based mostly as distant as Taiwan.
Meanwhile, tech giants have been tightening belts and shedding employees to endure powerful international financial circumstances and a return to pre-pandemic life much less depending on web companies.
Amazon, Meta, Microsoft and Google’s guardian firm Alphabet have all just lately laid out plans to scale back workforces, after hiring closely through the pandemic to fulfill elevated demand for digital companies.
