TSLA - IBM Layoffs 2023: What to Know About the Latest IBM Job Cuts
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IBM (NYSE:IBM) layoffs will see the tech company cutting 3,900 jobs, which represents about 1.5% of its workforce.
According to IBM, these layoffs have to do with its spinoff of the Kyndryl and Watson Health units. This will see the company adjusting its global workforce to take into account employees left over after the spinoffs.
IBM notes that it will cost it $300 million to lay off these employees. It also makes sure to mention that it still intends to hire new employees, but only in higher-growth areas. All of this comes amid a string of layoffs from tech companies as inflation weighs on the economy.
The IBM Layoffs Follow An Earnings Miss
Specifically, the $10.4 billion in net cash from operating activities and $9.3 billion free cash flow came in below estimates. This had analysts expecting IBM to announce a larger number of layoffs in an effort to cut costs further.
As that didn’t happen, traders are reacting to the news negatively today. That brings with it heavy trading of IBM stock as investors sell their shares. This has some 8 million shares of the stock on the move as of this writing. To put that in perspective, the company’s daily average trading volume is closer to 4.3 million shares.
IBM stock is down 4.9% as of Thursday morning.
There’s even more stock market news traders will want to know about below!
We’ve got all of the latest stock coverage to get investors through Thursday! A few examples include our deep dives into what’s moving shares of Cryptyde (NASDAQ:TYDE), Mullen Automotive (NASDAQ:MULN), and Tesla (NASDAQ:TSLA) stock today. You can read up on all of that at the following links!
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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