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IBM does well

by on26 January 2023

Still fires more workers 

Biggish Blue announced that its operating profits and revenue met analysts' expectations, but the outfit said it would still fire 3,900 workers because that is what everyone is doing these days.

This number is equivalent to about 1.5 per cent of IBM's global workforce, although the company has been off-loading a lot of staff these days and spun off so much of its business, we wonder if there is anyone still left in head office.

IBM insists the job cuts are because of its earlier asset sales instead of a weakness in its business. In 2021, IBM spun off its managed infrastructure services business Kyndryl into a separate company. More recently, the firm sold off its Watson Health analytics business to a private equity firm.

IBM will spend about $300 million in the first quarter of this year to pay for the severance packages of those who will be let go. Despite this development, the company still expects to hire in "higher-growth" areas.

It seems that most technology companies are laying off staff for short term improvements to their bottom line. We expect next year they will complain of staff shortages while their bottom lines are kicked by more agile new companies manned by former staffers.


Last modified on 26 January 2023
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