IBM reported better than expected, but announced the reduction of 3.9 thousand jobs

American technology corporation IBM informedthat in the fourth quarter it received revenue of $16.7 billion, despite the fact that analysts expected decrease in revenue to $16.4 billion. Earnings per share amounted to $3.6 – this was in line with the forecasts of analysts polled by Refinitiv.

Thus, IBM managed to show relatively good results, given the deteriorating market conditions for technology companies last year. “Looking ahead to 2023, we expect good revenue growth,” said IBM CEO Arvand Krishna.

However, IBM continued the trend started earlier by other technology companies and announced job cuts. The cuts will affect two divisions of the company, which it had already begun to spin off from its structure – Kyndryl, engaged in infrastructure services for business, and the division for the development of analytical products in the field of healthcare. The total number of layoffs at IBM will be 3.9 thousand, which is 1.5% of the total number of employees. Other leading tech companies have previously announced larger cuts: Alphabet 12,000, Microsoft 10,000.

Evgeniy Khvostik