Revenue has rarely increased significantly, but IBM announced that it will lay off 3,900 employees. Why?

According to the “Wall Street Journal” report on January 26, IBM has joined the army of layoffs, announcing on Wednesday that it will lay off about 3,900 people. A spokesman for the company said the layoffs will result from the spinoff of its Kyndryl and divestiture of its healthcare business, which will cost the company about $300 million. According to the company’s latest annual report, the layoffs will reduce its total workforce of 280,000 by 1.4%. It is worth noting that, unlike other technology companies that have laid off employees, IBM has not experienced significant losses in 2022, but has experienced considerable increases. After almost a decade of no growth or declining revenue, IBM’s revenue will grow for the second year in a row in 2022, with a year-on-year growth rate of 6% to $60.5 billion, or as much as 12% year-on-year after deducting currency factors. | Related reading (Daily Economic News)

the treasure

Founded in 1911, IBM is an evergreen tree in the business world. It has been able to keep itself alive and growing for more than 110 years. Keeping pace with the times can be said to be the gene of its success. At the beginning of the 21st century, IBM resolutely withdrew from PC manufacturing and focused on the server field; in the past two years, IBM has split to focus on hybrid cloud and information technology + infrastructure, which are all big moves behind its success.

Although “Big Blue” has not been as “highlighted” as companies such as Apple, Amazon, and Tesla in recent years, and has even been criticized for lack of innovation, IBM is still an excellent and great company that can survive in a bad economy. At that time, it still maintained a strong performance, which itself is an undisputed strong.

IBM’s layoffs are very gentle, basically there are less than two out of 100 people. Compared with Meta, Google and Microsoft, this ratio is much smaller, and the reason is the spin-off of Kyndryl and the divestiture of the medical and health business. A relatively normal attrition.

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