IBM holds first job cuts with new CEO
US, WASHINGTON (ORDO NEWS) — International Business Machines Corp. is conducting the first major job cut under the new CEO Arvind Krishna, who is trying to revive growth in an American technology company. It is reported by The Wall Street Journal.
IBM said the cuts are designed to make it more flexible, but they are taking place amid a severe economic downturn caused by the COVID-19 pandemic.
The company did not disclose the extent of the cuts. According to a WSJ source familiar with the situation, the cuts will affect several thousand people. As of the end of last year, IBM had about 352.6 thousand employees.
The cuts will affect several IBM divisions, including the Global Technology Services division, which offers IT outsourcing services, and the Watson division, which specializes in artificial intelligence.
Krishna led IBM last month, faced with two challenges: a pandemic and the need to reorient a company whose revenue has been declining for several years.
According to the results of the 1st quarter of 2020, IBM’s revenue was $ 17.57 billion , which is 3.4% less than a year earlier. Net income fell to $ 1.18 billion from $ 1.59 billion a year earlier. Adjusted earnings were $ 1.84 per share.
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