IBM joins the wave of mass layoffs, cuts 3,900 jobs


Mass layoffs in the tech sector continue with International Business Machines Corporation, popularly known as IBM, being the latest to join the wave. The New York-based computing giant is laying off 3,900 employees, which is about 1.5 percent of its global workforce. Alphabet (Google), Amazon, Meta, Microsoft, Twitter, and many other tech companies have previously announced massive job cuts.

IBM announced its layoff plan during a conference call last week where the company also shared its financial results for the fourth quarter of 2022. Unlike most other companies, which are letting employees go due to weak business and a global economic slump, IBM pinned this job cut to its asset sales. The company spun off its legacy infrastructure services business in 2021 to create a separate company Kyndryl. It also sold its healthcare data analytics company Watson Health last year. Watson Health was set up as a separate business in 2015.

This restructuring has now resulted in IBM reducing its workforce. According to The New York Times, the company “would take a charge of $300 million” to pay for severance costs for outgoing employees in the first quarter of this year. The tech behemoth reported sales revenue of $16.7 billion for the final quarter of 2022. The figure is marginally higher than the Wall Street estimate of $16.4 billion. It also marks a six percent annual revenue growth from the same period in 2021. IBM’s operating earnings per share of $3.60 in Q4 2022 were in line with analysts’ forecasts.


IBM pushes forward the mass layoff wave in the tech sector

As said before, IBM is the latest of a host of tech biggies that have fired thousands of employees over the past few months. Mass layoffs at Twitter have been widely reported as it came after a high-profile privatization of the company. Reports suggest the social network has laid off about 80 percent of its global workforce since Elon Musk took control in October last year.

Facebook parent company Meta announced 11,000 job cuts around the same time. That’s about 13 percent of its total employee count. Since then, Microsoft has laid off over 10,000 employees, while Amazon has cut more than 18,000 jobs. Google’s parent Alphabet laid off 12,000 employees just over a week ago, letting go about six percent of its global workforce. Software company SAP also recently announced 3,000 job cuts. Elon Musk’s EV (electric vehicle) company Tesla and American wireless carriers T-Mobile and Verizon are other big names to have recently laid off employees in mass.