In spite of promising annual results in 2022, IBM will cut 3,900 jobs over the next few months to reduce costs.
IBM’s employees aren’t immune to the wave of layoffs flooding the top of the tech industry at this time. The organization told Bloomberg that 3,900 staffers will be fired in the first quarter of this year as part of a cost-cutting exercise.
In total, the round affects about 1.5 percent of all employees. Severance costs are expected to add $300 million in expenses this year.
Promising annual results
The layoff round contrasts IBM’s promising yearly results. Revenue rose about 12 percent to a total of €55.5 billion ($60.5 billion) — a record-breaking year for the past decade.
In the fourth quarter of 2022, IBM generated revenue of $16.7 billion. The tech giant expects the upward trend to persist throughout 2023, in part due to favourable exchange rates.