IBM cuts 3,900 jobs in latest round of big tech layoffs

AppleInsiderAppleInsider
Posted:
in General Discussion
IBM is firing approximately 1.4% of its total workforce, with the cuts coming from its IT services and healthcare groups.




Following major layoffs from Amazon, Spotify, plus Microsoft and Google, IBM has announced its financial earnings, and revealed the redundancies.

According to the Wall Street Journal, IBM sales were flat in Q4, and reported revenue was down over $1 billion because of the strength of the US dollar.

Nonetheless, IBM posted a net income figure of $2.71 billion, higher than the $2.33 billion from the same period in 2021. Revenue was down, however, at $16.69 billion compared to $16.7 billion in the previous year.

That fractionally lower figure was also significantly better than analysts had expected. The average of analysts polled and predicted $16.15 billion in revenue.

Then, too, IBM's software division rose 2.8% to $7.3 billion. The company's infrastructure work rose 1.6% to $4.5 billion, and its consulting revenue rose 0.5% to $4.8 billion.

IBM's financing division dropped 0.4% to $200 million, however.

The approximately 3,900 jobs are to come from IBM's healthcare divestiture, and also the Kyndryl Holdings IT services business that was spun off in 2022.

While IBM did not discuss the reasons for its head count reduction, other big tech firms have cited both inflation and a return to pre-pandemic demand.

So far Apple has chiefly managed to avoid major layoffs, although it has dropped an unspecified number of retail staff working for it in stores such as Best Buy. Previously Tim Cook has said that Apple is slowing down its hiring, and "being deliberate" about how it recruits.

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Comments

  • Reply 1 of 11
    darkvaderdarkvader Posts: 1,146member
    "Profits are up!  What should we do about that?"

    "I know, let's fire the people who made it happen!"
    n2itivguyStrangeDayslkruppjcs2305
  • Reply 2 of 11
    DAalsethDAalseth Posts: 2,972member
    What’s interesting in all of these layoffs is what’s being cut. A lot of these companies added people during covid, but it mostly isn’t a case of last in first out. No, MS cut big parts of their VR group, Amazon, gutted their Alexa group, IBM cuts are “ from IBM's healthcare divestiture, and also the Kyndryl Holdings IT services business that was spun off in 2022.” These are targeted cuts to money losing units. Covid gave a lot of companies the chance to take stock, and examine their units with a clear eye to what was working and what wasn’t. 

    The era of pie in the sky concepts is over. 
    davwatto_cobra
  • Reply 3 of 11
    danoxdanox Posts: 3,284member
    IBM are they still around? slowly sinking into the tech sunset.
    williamlondon
  • Reply 4 of 11
    cgWerkscgWerks Posts: 2,952member
    darkvader said:
    "Profits are up!  What should we do about that?"
    "I know, let's fire the people who made it happen!"
    I’d take heed. I think they are just preparing for what they expect to be coming, and probably taking advantage of the situation to do some house-cleaning/trimming.

    DAalseth said:
    … The era of pie in the sky concepts is over. 
    Yep, the ‘free money’ driving lots of things is now gone. Now we pay the piper. The real question (looking historically), is whether we’re just going to get *another* major devaluation of our fiat, or whether this one will trip the empire-fall protocol. The Keynesian farce is about to be put to the test.
    FileMakerFellerwatto_cobra
  • Reply 5 of 11
    mikethemartianmikethemartian Posts: 1,473member
    danox said:
    IBM are they still around? slowly sinking into the tech sunset.
    When Apple was releasing the original Mac, IBM was inventing quantum key distribution and still to this day is one of the leaders of bleeding edge technology in the field. But since they don’t make phones in Midnight blue with cute emojis and other shiny consumer products you think they are obsolete.
    edited January 2023 muthuk_vanalingamDAalsethwatto_cobra
  • Reply 6 of 11
    StrangeDaysStrangeDays Posts: 13,055member
    mikethemartian said:
    danox said:
    IBM are they still around? slowly sinking into the tech sunset.
    When Apple was releasing the original Mac, IBM was inventing quantum key distribution and still to this day is one of the leaders of bleeding edge technology in the field. But since they don’t make phones in Midnight blue with cute emojis and other shiny consumer products you think they are obsolete.
    Isn't much of their business standard enterprise consulting now? In my markets they're just another Accenture, SAIC, etc. These companies are billing machines -- they all say they're tech but having worked within them for a decade they're just high-tech temp workers building web apps for healthcare, government, telecom, etc. I'm sure IBM still has some R&D stuff, but I'd like to know how much of their business is that vs business consulting/billable hours.
    dewmeFileMakerFellercgWerkswatto_cobra
  • Reply 7 of 11
    BlueLightningBlueLightning Posts: 151member
    danox said:
    IBM are they still around? slowly sinking into the tech sunset.
    When Apple was releasing the original Mac, IBM was inventing quantum key distribution and still to this day is one of the leaders of bleeding edge technology in the field. But since they don’t make phones in Midnight blue with cute emojis and other shiny consumer products you think they are obsolete.
    Isn't much of their business standard enterprise consulting now? In my markets they're just another Accenture, SAIC, etc. These companies are billing machines -- they all say they're tech but having worked within them for a decade they're just high-tech temp workers building web apps for healthcare, government, telecom, etc. I'm sure IBM still has some R&D stuff, but I'd like to know how much of their business is that vs business consulting/billable hours.
    A lot of the services part was spun-off with Kyndryl a while back.  Much of the software/consulting at IBM appears to be related to Red Hat (Linux), which they own, and to multi-cloud integration and management.  IBM is working with chip makers in Japan to bring Japan's chip manufacturing up to date (and possibly diversify their mainframe chip supply away from Samsung).  Also has new chip fab in the works (NY, I think).  Much of the design of current WinTel PCs was decided by IBM (when HPQ sales folks were still telling people to avoid WinTel, because folks would be trapped in an IBM architecture).  That's largely why most PCs still have plugged-in components (RAM and such, just like minicomputers and mainframes).  

    Hum, billing machines, yes.  Sounds like Microsoft with Office 365 and Azure.  Wonder if MSFT laid off someone that caused outage a few days ago?  Congratulations on all the work you've done on this network simplification.  Oh, by the way, we can handle it from here.  This email is to inform you that you're laid off.  

    We've had nearly free money (very low interest rates) for a long time that has led to questionable investment of shareholder's money.  Start-ups have been able to raise money by selling additional shares, and diluting the investment of the earlier shareholders.  Probably why so many zombie tech start ups will go belly up in the next year, as their cost of money goes up.  Google claims MSFT is selling basic cloud services at a 10% loss (if true, needs to stop).  
    edited January 2023 dewmecgWerkswatto_cobra
  • Reply 8 of 11
    lkrupplkrupp Posts: 10,557member
    danox said:
    IBM are they still around? slowly sinking into the tech sunset.
    Amazing you’re still around. Big Blue is alive and well, just not making those shiny gadgets like Apple and Samsung make.
    dewme
  • Reply 9 of 11
    sflocalsflocal Posts: 6,122member
    danox said:
    IBM are they still around? slowly sinking into the tech sunset.
    As someone who works everyday developing on IBM Midrange systems, I can assure you that IBM is very much afloat.  Perhaps you should stick with non-enterprise stuff?
    muthuk_vanalingamdewmewatto_cobra
  • Reply 10 of 11
    danoxdanox Posts: 3,284member
    mikethemartian said:
    danox said:
    IBM are they still around? slowly sinking into the tech sunset.
    When Apple was releasing the original Mac, IBM was inventing quantum key distribution and still to this day is one of the leaders of bleeding edge technology in the field. But since they don’t make phones in Midnight blue with cute emojis and other shiny consumer products you think they are obsolete.
    They are obsolete they’re on their way out just like Xerox they had it all and squandered it.
  • Reply 11 of 11
    davidwdavidw Posts: 2,100member
    darkvader said:
    "Profits are up!  What should we do about that?"

    "I know, let's fire the people who made it happen!"
    You don't seem to know anything. 

    >The approximately 3,900 jobs are to come from IBM's healthcare divestiture, and also the Kyndryl Holdings IT services business that was spun off in 2022.<

    IBM got rid of the employees for divisions that are no longer part of IBM. Do you even know what "divestiture" and "spun off" even means?  Do you know of any reason why IBM should keep employees of divisions that IBM no longer have and that will no longer contribute to any of IBM future revenue or profits?


    di·vest·i·ture
    /dīˈvestəˌCH(o͝o)ər,dəˈvestəˌCH(o͝o)ər/
    noun
    1. the action or process of selling off subsidiary business interests or investments.
    spin off
    phrasal verb of spin
    1. (of a parent company) turn a subsidiary into a new and separate company.
    dewmewatto_cobra
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