IBM Corp has said the company would lay off 3,900 people as part of some asset divestments and posted flat 4th-quarter revenue due to lackluster demand for its consulting services. The resulting layoffs will cause a USD 300 million charge in the January-March period, IBM said.
Big Blue spun-off its large and laggard managed infrastructure business, now called Kyndryl, in late 2021 to focus on its hybrid-cloud, where it helps clients set up a combination of their own data centers and leased computing resources. the company also divested its healthcare data and analytics business from its AI business Watson Health.
"Unlike many others over the last 2 to 2-1/2 years that were hiring in tens and 100s' of people ... we are leveraging digitization, Artificial Intelligence automation, that drives efficiency, but we are committed to hiring for client-facing research and development," he said.
IBM also forecast annual revenue growth in the mid-single digits on constant currency terms, weaker than the 12 percent it reported last year, as pandemic-led demand for digitizing businesses has given way to cautious spending by clients in the face of rising recession fears.
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