IBM’s IT group will cut about 3,900 jobs, or just over 1 percent of its workforce, in layoffs linked to a strategic change in direction, a source familiar with the plans told AFP Wednesday.

The Armonk, New York-based company did not explicitly mention job cuts in its earnings report on Wednesday or at its quarterly earnings call.

Her appeal spoke only of an additional cost of $300 million. According to an AFP source, we are talking about the cost of compensation.

The move “is entirely in conjunction with the spin-off of Kyndryl and our healthcare business,” a company spokesperson said. He clarified that this has nothing to do with “results for 2022 or projections for 2023”.

In 2021, IBM separated from the rest of the group the business of providing consulting services and computer systems services, a historically independent area, but less profitable than the cloud services (cloud) in which it has invested heavily.

The new organization resulting from the split was named Kyndryl and went public in November 2021.

As for the activities related to the collection and analysis of medical data, which is part of the Watson Health division, it was sold in early 2022 to the investment company Francisco Partners.

The source explained that although the positions associated with planned job cuts and/or layoffs remained with IBM after the two spin-offs, they were related to the spin-offs.

Yesterday, IBM reported slightly higher-than-expected earnings and fourth-quarter earnings, which were broadly in line with analysts’ forecasts.

After hours on Wall Street, IBM shares fell nearly 2 percent.

Many IT companies, including giants such as Amazon, Meta (Facebook, Instagram), Microsoft and Alphabet (Google), have recently announced large-scale layoffs following a massive hiring wave during the pandemic, when demand for services skyrocketed. they offer.

Source: RES-IPE