IBM layoffs

2023 - 1 - 27

IBM and SAP are cutting thousands of jobs (CNN)

IBM and SAP are the latest tech companies to slash thousands of jobs, as they reorganize businesses and profits come under pressure from a slowing global ...

The move will cost IBM [(IBM)](https://money.cnn.com/quote/quote.html?symb=IBM&source=story_quote_link) about $300 million this quarter, a spokesperson confirmed. [(IBM)](https://money.cnn.com/quote/quote.html?symb=IBM&source=story_quote_link) announced the cuts Wednesday, saying they were related to the previously announced spinoff and sale of two business units. The restructuring will cost between €250 million ($272 million) and €300 million ($381 million); the company’s shares were down 3.3% in Frankfurt. The US tech sector, which went on a hiring spree during the pandemic, announced 97,171 job cuts in 2022, a 649% increase on the previous year, according to consulting firm Challenger, Gray & Christmas. It said that increased investment into research and development, sales and marketing also impacted performance. [(GOOGL)](https://money.cnn.com/quote/quote.html?symb=GOOGL&source=story_quote_link) parent Alphabet and Microsoft [(MSFT)](https://money.cnn.com/quote/quote.html?symb=MSFT&source=story_quote_link) each announced layoffs of 12,000 and 10,000 workers, respectively. [(AMZN)](https://money.cnn.com/quote/quote.html?symb=AMZN&source=story_quote_link) and Salesforce to shed thousands of jobs, with more than 18,000 employees affected at the e-commerce giant alone. The units affected are Kyndryl, an IT infrastructure services business that was officially separated from IBM in November, and IBM’s healthcare analytics business, which an investment firm is in the process of acquiring. An IBM spokesperson told CNN on Wednesday that the company’s cuts were related entirely to the reorganization of the two business units affected, “not an action based on 2022 performance or 2023 expectations.” [(SAP)](https://money.cnn.com/quote/quote.html?symb=SAP&source=story_quote_link), Europe’s largest software company, will lay off 2.5% of its global workforce of 112,000, or around 2,800 employees, according to an [earnings report](https://www.sap.com/docs/download/investors/2022/sap-2022-q4-statement.pdf) published Thursday. In a live streamed presentation to reporters, SAP CEO Christian Klein said that the restructuring was “targeted” and would allow the company to invest in the areas “where it really matters for SAP to be competitive in the future,” particularly its cloud business. [slash thousands of jobs](https://edition.cnn.com/2023/01/22/tech/big-tech-pandemic-hiring-layoffs/index.html), as they reorganize businesses and profits come under pressure from a [slowing global economy](https://edition.cnn.com/2023/01/18/tech/microsoft-layoffs/index.html).

IBM and SAP Are the Latest to Announce Layoffs, SAP to Shop ... (Channel Futures)

Like many companies that have hired extensively since 2020, SAP added nearly 7,000 employees last year. During SAP's earnings webcast, CEO Christian Klein ...

The intent to carry out a targeted restructuring in select areas of the company.” [acquired in 2018](https://news.sap.com/2018/11/sap-to-acquire-qualtrics-experience-management/) for $8 billion. [IBM](https://www.ibm.com/partnerplus/) and [SAP](https://www.sap.com/partners.html) have joined the [cadre of IT giants](https://www.channelfutures.com/cloud-2/cloud-jobs-tech-sector-layoffs-hit-amazon-web-services-microsoft-azure) planning to lay off thousands of their employees. SAP [already spun out](https://www.qualtrics.com/news/qualtrics-announces-pricing-of-its-initial-public-offering/) part of Qualtrics in 2021 in an IPO. Klein said the layoffs result from SAP’s consolidation around its S/4 HANA and Business Technology Platform (BTP). During SAP’s earnings webcast, CEO Christian Klein announced the company’s plan to lay off 3,000 employees. “Our strategy continues to strongly resonate with clients and partners,” Krishna said, regarding IBM’s emphasis on AI and hybrid cloud. “Looking back on the year, we are pleased with the progress we made,” chairman and CEO Arvind Krishna said. [Kavanaugh told Reuters](https://www.msn.com/en-ca/money/topstories/ibm-cuts-3900-jobs-misses-annual-cash-target/ar-AA16Kq76) that IBM would let go of 3,900 employees. IBM CFO James Kavanaugh briefly mentioned a $300 million charge for the current quarter to write off “stranded costs.” During its investor webcast on Thursday, SAP said it would eliminate 3,000 jobs, amounting to 2.5% of its workforce. “We delivered revenue growth above our mid-single digit model, and we delivered free cash flow.

IBM and SAP become latest tech companies to lay off thousands of ... (USA TODAY)

IBM and SAP have joined other tech giants cutting thousands of jobs. IBM is cutting 1.5% of its global workforce, while SAP is downsizing by 2.5%.

The company also announced it was exploring a sale of its stake in U.S.-based software company Qualtrics. [Spotify announced it would cut 6% of its workforce](https://www.usatoday.com/story/money/2023/01/23/spotify-layoffs-employees-cut-dawn-ostroff/11105140002/). "Our solid fourth-quarter performance capped a year in which we grew revenue above our mid-single digit model. [Facebook parent Meta](https://www.usatoday.com/story/tech/2022/11/07/facebook-meta-layoff-thousands-employees-reports/8292640001/) announced 11,000 job cuts, or 13% of its workforce, in November. [Amazon began laying off thousands](https://www.usatoday.com/story/tech/2022/11/07/facebook-meta-layoff-thousands-employees-reports/8292640001/) of employees. IBM announced the cuts, some 3,900 positions, or 1.5% of its global workforce, on Wednesday. Here's what to know.](https://www.usatoday.com/story/money/2023/01/26/gdp-fourth-quarter-report-us-economy-growth-recession/11123731002/) [ earnings showed](https://news.sap.com/2023/01/sap-announces-fourth-quarter-and-full-year-2022-results/) cloud revenue was up 33% in FY 2022. [interview with CNBC](https://www.cnbc.com/2023/01/26/sap-to-cut-3000-roles-explore-sale-of-qualtrics-stake.html). [Spotify CEO announces layoffs among 6% of employees as tech job cuts continue](https://www.usatoday.com/story/money/2023/01/23/spotify-layoffs-employees-cut-dawn-ostroff/11105140002/) [wrote in a statement](https://newsroom.ibm.com/2023-01-25-IBM-RELEASES-FOURTH-QUARTER-RESULTS). [ slew of other tech giants cutting thousands of jobs i](https://www.usatoday.com/story/tech/2023/01/18/tech-layoffs-2023/11069223002/)n response to the slowing global economic outlook and waning demand for some digital services.

Dow, IBM, and SAP Keep the Layoffs Coming. It's Spreading Beyond ... (Barron's)

Layoffs in the tech sector are becoming an almost daily occurrence. IBM and SAP are the latest companies to join the industry's wave of job cuts, ...

IBM and SAP are the Dow, IBM, and SAP Keep the Layoffs Coming. Layoffs in the tech sector are becoming an almost daily occurrence.

Tech job bloodbath comes to IBM, CFO links layoffs to Kyndryl ... (The Register)

IBM is the latest tech company to jump on the layoff bandwagon, with news it would reduce its workforce by around 3,900. The roughly 1.5 percent of IBM's ...

[2021](https://www.theregister.com/2021/11/04/kyndryl_ibm_spinoff/). "And I'll acknowledge inflation as in wage inflation showed up and impacted our margins in consulting a lot more than we were expecting." But in a product-based business, our costs, like the industry is predominantly US. "We were not expecting the currency headwinds to be as severe as it turned out to be. [case](https://www.theregister.com/2022/04/07/ibm_securities_lawsuit/) popped up last April and August of 2022, with shareholders [demanding in writing](https://www.theregister.com/2022/08/01/exclusive_ibm_board_of_directors/) that IBM's board investigate the allegations. However, it does contribute to the growing number of unemployed professionals from the tech industry. Its target for 2022 was $10 billion. [demotion](https://www.theregister.com/2022/11/21/ibm_pregnancy_discrimination/) lawsuits. [sued](https://www.theregister.com/2023/01/18/ibm_sued_securities_fraud/) 13 current and former IBM execs on grounds the company used mainframe sales to fraudulently prop up newer business units, thereby allegedly deceiving the market. [latest reduction](https://www.theregister.com/2023/01/18/microsoft_job_cuts/) of 10,000, Amazon's [18,000](https://www.theregister.com/2023/01/20/amazon_job_cuts_costs/), Salesforce's [8,000](https://www.theregister.com/2023/01/04/salesforce_7000_job_cuts/), nor Alphabet's [12,000](https://www.theregister.com/2023/01/20/google_to_chop_12000_employees/). [IBM top brass accused again of using mainframes to prop up Watson, cloud sales](https://www.theregister.com/2023/01/18/ibm_sued_securities_fraud/) [IBM sues Micro Focus, claims it copied Big Blue mainframe software](https://www.theregister.com/2022/11/22/ibm_sues_micro_focus_for/) [IBM manager sues for $5m claiming postnatal demotion](https://www.theregister.com/2022/11/21/ibm_pregnancy_discrimination/) [Airline 'in talks' with Kyndryl after failed network card grounds flights](https://www.theregister.com/2022/10/10/kyndryl_aer_lingus/) [IBM staff grumble redeployment orders are stealth layoffs](https://www.theregister.com/2023/01/05/ibm_redeployment_orders/) [first confirmed the layoffs to Bloomberg](https://www.bloomberg.com/news/articles/2023-01-25/ibm-to-cut-about-3-900-workers-still-hiring-in-higher-growth-areas), saying they would focus on the workers "remaining" after its Kyndryl and [Watson Health](https://www.theregister.com/2022/08/29/ibm_allegedly_hid_watson_health/) units were spun off, and calling them a "ballpark" figure.

IBM Cuts Thousands of Employees in Latest Tech Layoffs (CNET)

The job cuts follow the computing giant spinning off parts of its business.

The layoffs amount to 2.5% of SAP's global workforce. The cuts amount to 1.5% of its workforce. The news came during a conference call as the computing giant reported [its financial results](https://newsroom.ibm.com/2023-01-25-IBM-RELEASES-FOURTH-QUARTER-RESULTS) for 2022's fourth quarter, the company confirmed to CNET via email.

IBM Layoffs 2023: Is the “Hired Quickly So Fired Quickly” Excuse ... (DATAQUEST)

IBM further went on to add that the mass firing, that is mainly a result of the spinoff of Kyndryl business and part of AI unit Watson Health, will cost the ...

Nevertheless, James Kavanaugh, chief financial officer, IBM said that the company was still committed to hiring for client-facing research and development. Nonetheless, Google has been a very special place, and I wish you the very best as you take care of it through tough times,” she said. The company reported a cash flow of 9.3 billion as opposed to the targeted $10 billion, which was apparently due to a higher-than expected working capital needs. I still believe in The Joy Of Search, but my enthusiasm was a little tempered this morning. This decision has been taken instead of the fact that the company reported a solid growth and a quarterly revenue of $16.7 billion, which was higher than the Wall Street estimate of $16.4 billion. IBM layoffs 2023 is at present the latest trend to rock the information technology industry.