IBM joins tech giants in announcing downsizing

Tech giant IBM has become the latest company to announce layoffs, joining the ranks of Amazon, Microsoft and Alphabet, who filed downlift plans recently to face the harsh global economic conditions.

According to a source, IBM will cut 3.900 jobs, accounting for 1% of its total workforce. The company has not discussed these moves in its quarterly report last Wednesday, or analysts call.

IBM plans to take a one-time payment of $300 million in its first quarter, which is related to the layoffs. Moreover, the cost is “fully related” to the spin-off of Kyndryl and the divestiture of the healthcare data and analytics businesses, a spokesperson declared to AFP. Despite these expenses, the technology firm posted a 2.9 billion dollar profit at the last quarter of 2021, a 17% increase.

The company had announced late last year an investment of $20 billion in semiconductors, quantum computing and other advanced technologies.

Thus, IBM joins other tech giants in downsizing policies to return to a pre-pandemic lifestyle, less dependent on digital services.