Retrenchment in American giant IBM, 3900 employees were fired

IBM is an American multinational information technology company. Its headquarter is located in New York, USA. This company works in more than 170 countries.

business

oi-Pallavi Kumari

Updated: Thursday, January 26, 2023, 9:56 [IST]

IBM joined wave of layoffs: Layoffs have begun in American multinational information technology company IBM. IBM has decided to lay off 3,900 of its employees. IBM has said about the decision to lay off 3900 employees that this decision has been taken after failing to achieve the annual cash target. The company’s chief financial officer (CFO) James Covena told Reuters the company was still “committed to hiring for client-facing research and development.”

In its official statement, IBM said that the reason for such huge layoffs from the company is the spinoff of Kindril business and a division of AI unit Watson Health, charging $ 300 million during January to March.

IBM Corp to lay off 3,900 people as part of some asset divestments: Reuters pic.twitter.com/tY3nKAnWcQ

— ANI (@ANI) January 25, 2023

Shares of IBM Company declined by 2 percent. According to experts, the fall in the shares of IBM company is due to retrenchment and missed free cash flow. Due to job cuts in the market, there is disappointment among the people. Although 3900 employees are only 1.5% of IBM’s staff. IBM’s 2022 cash flow was $9.3 billion, which was $10 billion short of its target.

Explain that currently American companies are doing large scale layoffs to deal with the global economic recession. Earlier, companies like Big Tech, Google, Amazon, Microsoft, Swiggy, Share Chat have also laid off.

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