Following suit of other tech giants, IBM Corp on Wednesday announced its decision to sack 3,900 employees. The decision comes as part of IBM’s asset divestments and also due to the company’s failure to achieve its annual cash target.
IBM Chief Financial Officer James Kavanaugh said that the company was still “committed to hiring for client-facing research and development” as reported by Reuters. According to the official statement by IBM, the layoffs are connected to the spinoff of its Kyndryl business and a part of its AI unit Watson Health. The company expects a $300 million charge in the January to March period.
The lay-offs come after rising expectations of beating revenue targets in the fourth quarter. Missed cash target along with the announcement of lay-offs has resulted in a 2% fall in its share value in extended trading.
