IBM Reports 71% Profit Drop, Announces Layoffs of 3,900 Employees

IBM Reports 71% Profit Drop, Announces Layoffs of 3,900 Employees

IBM Reports Loss in 2022 Following Job Cuts and Pension Expenses

American computer giant IBM reported a 71% year-on-year reduction in its profit in 2022 due to expenses related to the pensions of its workforce and the layoffs of 3,900 employees.

The company reported profits of 1,639 million dollars in the year, a figure that is explained in the charge of 5,900 million that was recorded in the third quarter due to an administrative matter. Meanwhile, its annual turnover rose 5% to $60.53 billion.

IBM failed to discuss job cuts in its quarterly earnings report released Wednesday at Wall Street close, nor in a call with analysts to discuss financial results. They later informed various outlets that it also plans those layoffs, related to the separation of Kyndryl in 2021 and Watson Health in 2022 as independent companies.

The New York state-based giant would assume a one-time payment of $300 million in its first quarter this year, which, according to internal sources consulted by AFP is related to the layoffs.

It joins other technology giants, such as Google, Amazon, Twitter, Meta, and Microsoft which have laid off workers to face the tough global economic conditions, and more recently due to the return to lifestyle less dependent on digital services.

IBM registered a profit of 2.9 billion dollars in the last three months of last year, 17% more than in the same period 2021, and a $20 billion investment in semiconductors, quantum computing and other technologies within New York state.

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