Slipping IBM Slump

Slipping IBM Slump

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  • IBM's (IBM) fourth-quarter earnings remained the same as last year at $16 billion, while their stock prices decreased by 3.8% on Thursday. The revenues from Red Hat, which IBM purchased for $34 billion, increased by 10%, software revenues rose by 2.8%, and consulting revenues went up by 0.5%.
  • Additionally, IBM is letting go of approximately 3,900 employees which is equivalent to 1.5% of its worldwide staff. The termination of these positions will cost $300M. Despite this, IBM's CEO anticipates growth in both revenue and free cash flow by 2023.

Why it matters

IBM has joined other tech companies’ laying-off the staff; Alphabet will be cutting around 12,000 jobs, Microsoft slashing around 5% of its global workforce, and Meta cutting around 11,000.


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