IBM

IBM's annual sales revenue rises, but layoffs are coming

A best-known veteran of the technology industry, IBM's annual sales revenue increased by around 5.5% last year, showing growth not seen in over ten years, while outpacing all other players in the industry. Although the last quarter of last year also exceeded expectations in the company's kitchen, IBM could not be left out of the wave of downsizing that plagues the sector.

The company announced on a conference call after the release of its fourth-quarter financial results that it would cut about 1.5% of its global workforce, or about 3,900 workers, in the coming months. The layoffs, which are largely related to the outsourcing of Kyndryl and Watson Healt projects, are expected to cost the company about $300 million in the first quarter.

According to the report published yesterday, Nagy Kék generated sales of 16.7 billion dollars in the period from the beginning of October to the end of December, practically unchanged (up 6% without currency effects) from the level of a year earlier. Meanwhile, the company's operating profit reached $3.8 billion, making the company 8% better on the profit side than the same period in 2021.

While growth in all three of IBM's businesses (software, consulting, infrastructure) showed a slow pace in the fourth quarter, cloud products were also extremely salable last year, at least this is indicated by the fact that that, according to the report, the number of service contracts signed in 2022 has doubled compared to the previous year

Along with the just-announced downsizing, IBM is not planning a full headcount shutdown, at least the company's management claimed during the report that the company still has new employees in many key areas of research and development.

Source: Tamás Koi