Saturday, February 4, 2023

IBM lays off 3,900 employees due to low demand for services

Mexico City ,

IBM Corporation lay off 3900 employees After posting flat billings in the fourth quarter as part of some asset divestitures and a decrease in demand for its consulting services.

company spun off its backward managed infrastructure business, Now renamed Kyndryl to focus on its hybrid cloud, through the end of 2021, where it helps customers set up a mix of their own data centers and computing resources.

as well Disrupt your data and analytics business healthcare from its Watson Health artificial intelligence unit.

IBM said the resulting layoffs would result in a $300 million charge in the January-March period.

but James Kavanaugh, the company’s chief financial officer, Asked to do reuters on Wednesday that IBM would continue to hire employees in critical areas.

“Unlike many other competitors who were hiring tens and thousands of people over the past two to two and a half years…we are leveraging digitization, AI automation, which drives efficiency, and we are hiring workers. Committed to keeping customer-oriented research and development,” he said.

company too pProjected single-digit annual revenue growth In stable currency terms, up from a weak 12 per cent reported last year, pandemic-induced demand for business digitization has given way to cautious spending by customers amid fears of a recession in the USA.

In October, IBM warned about Weak new reserves in Western EuropeWhile its peer Accenture Plc also saw a decline in its consulting business.

Still, Kavanaugh told the company Looking forward to grow your consulting business In terms of cloud spending. Its deals to double in 2022 to fine-tune services with partners such as Amazon AWS and Microsoft’s Azur.

loss Revenue from its hybrid cloud grew 2 percent $6.3 billion in the quarter ended December 31. Total revenue for the period was $16.69 billion, compared with analyst estimates of $16.4 billion, according to Refinitiv.

110 year old company, which Generates more than half of its income outside the United States, said they expect a neutral exchange rate effect on their business this year due to the fall in the dollar. The firm calculated the impact from foreign currency translation of $1.00 million during the fourth quarter.


Nation World News Desk
Nation World News Desk
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