IBM Plans To Cut About 3,900 Jobs : Reports

(RTTNews) - International Business Machines Corp. (IBM) plans to cut about 3,900 jobs or about 1.5% of its global workforce, according to several media reports citing a company spokesman's interview.

The spokesman reportedly said the job cuts are a final step after asset sales rather than a sign of weakness in its business.

The company reportedly expects to record a first-quarter charge of $300 million tied the spinoff of its managed infrastructure business, Kyndryl, and the divestiture last year of its Watson health-care unit.

While announcing its fourth quarter results earlier today, IBM said it expects full-year 2023 constant currency revenue growth consistent with its mid-single digit model, and about $10.5 billion in consolidated free cash flow, up more than $1 billion year to year.

Many major US tech firms recently announced job cuts or hiring freeze amid the slowing growth. Alphabet Inc., the parent company of search giant Google, plans about 12,000 job cuts, while Microsoft announced 10,000 job cuts, Amazon 18,000 jobs or about 6% of its workforce, and Facebook parent Meta around 11,000 roles.