IBM

IBM is cutting 3,900 employees despite reporting revenues that beat Wall Street expectations.

The layoffs are planned between January and the end of March, and stem from IBM’s spinoff of Kyndryl and Watson Health.

“Looking back on the year, we are pleased with the progress we made,” chairman and CEO Arvind Krishna said. “We delivered revenue growth above our mid-single digit model, and we delivered free cash flow. I’ll acknowledge there is more to do this year. We will unlock more productivity, expand the strategic partnerships and put more investments in specific growth markets.”

IBM forecasts that 2023 revenue growth will remain in the single-digit range with $10.5 billion in free cash flow.

“Our strategy continues to strongly resonate with clients and partners,” Krishna said, regarding IBM’s emphasis on AI and hybrid cloud.