IBM to Cut About 3,900 Workers, Still Hiring in ‘Higher Growth’ Areas
- Company will cut about 1.5% of workforce, CFO Kavanaugh says
- Free cash flow in 2023 projected to be $10.5 billion
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International Business Machines Corp. delivered an upbeat annual sales forecast while announcing it would eliminate about 1.5% of its global workforce, following similar job cuts the past few months by many of its technology peers.
The reductions will amount to a “ballpark” figure of 3,900, Chief Financial Officer James Kavanaugh said Wednesday in an interview. The cuts will focus on workers remaining after spinning off the Kyndryl and Watson Health units and will cost the company about $300 million, he said. IBM still expects to hire in the “higher-growth areas,” Kavanaugh said.