The tech layoffs continue with IBM being the latest company to lay staff off. They announced yesterday that nearly 4000 had gotten the axe:
Chief Financial Officer James Kavanaugh told Reuters that the company was still “committed to hiring for client-facing research and development”.
The layoffs — related to the spinoff of its Kyndryl business and a part of AI unit Watson Health — will cause a $300 million charge in the January-March period, IBM said.
But here’s the really bad part about this. Investors don’t think the cuts went far enough:
Shares of the company fell 2% in extended trading, erasing earlier gains on the largely upbeat results. Analysts said news of the job cuts and free cash flow miss was behind the drop.
“It seems as if the market is disappointed by the size of its announced job cuts, which only amounted to 1.5% of its workforce,” said Jesse Cohen, senior analyst at Investing.com.
“Investors were hoping for deeper cost-cutting measures.”
If that is true it really is a sad commentary on the times that we live in. Having people lose their jobs shouldn’t be seen as a sport where the biggest job cuts announced by a company wins. But clearly that’s how Wall Street sees things. And that’s sad.
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This entry was posted on January 26, 2023 at 8:26 am and is filed under Commentary with tags IBM. You can follow any responses to this entry through the RSS 2.0 feed.
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IBM Axes Nearly 4000 Jobs
The tech layoffs continue with IBM being the latest company to lay staff off. They announced yesterday that nearly 4000 had gotten the axe:
Chief Financial Officer James Kavanaugh told Reuters that the company was still “committed to hiring for client-facing research and development”.
The layoffs — related to the spinoff of its Kyndryl business and a part of AI unit Watson Health — will cause a $300 million charge in the January-March period, IBM said.
But here’s the really bad part about this. Investors don’t think the cuts went far enough:
Shares of the company fell 2% in extended trading, erasing earlier gains on the largely upbeat results. Analysts said news of the job cuts and free cash flow miss was behind the drop.
“It seems as if the market is disappointed by the size of its announced job cuts, which only amounted to 1.5% of its workforce,” said Jesse Cohen, senior analyst at Investing.com.
“Investors were hoping for deeper cost-cutting measures.”
If that is true it really is a sad commentary on the times that we live in. Having people lose their jobs shouldn’t be seen as a sport where the biggest job cuts announced by a company wins. But clearly that’s how Wall Street sees things. And that’s sad.
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This entry was posted on January 26, 2023 at 8:26 am and is filed under Commentary with tags IBM. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.