The job cuts are related to 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 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.”
IBM reports highest annual revenue growth in 10 years, CEO upbeat
IBM recently reported its highest annual revenue growth in a decade and beat Wall Street expectations for the fourth quarter. IBM’s full-year revenue grew 5.5% to $60.53 billion. “Our solid fourth-quarter performance capped a year in which we grew revenue above our mid-single digit model. Clients in all geographies increasingly embraced our hybrid cloud and AI solutions as technology remains a differentiating force in today’s business environment,” said Arvind Krishna, IBM chairman and chief executive officer. “Looking ahead to 2023, we expect full-year revenue growth consistent with our mid-single digit model.”
The 110-year-old company also forecast annual revenue growth in the mid-single digits on constant currency terms, weaker than the 12% it reported for 2022 but in line with mid-term targets announced in 2021. Analysts, however, are worried if the company would be able to deliver on these numbers considering the turbulent macroeconomic environment.
Rivals too report revenue weakness
Two of the biggest rivals of IBM, Accenture and Cognizant, recently reported weakness in their consulting business. Cognizant Technology Solutions Corp also cut its 2022 forecast due to a pullback in contracts.
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