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IBM Cuts Thousands of Employees in Latest Tech Layoffs

The job cuts follow the computing giant spinning off parts of its business.

IBM's white logo is seen on the side of a building against a blue sky
IBM will cut 3,900 jobs.
Emanuele Cremaschi/Getty Images

IBM on Wednesday joined Microsoft, Google and other tech companies that are cutting jobs, saying 3,900 employees would be laid off. The news came during a conference call as the computing giant reported its financial results for 2022's fourth quarter, the company confirmed to CNET via email. 

The layoffs are a result of its spinning off of technology services business Kyndryl as a separate company and the sale of its health care data analytics business. The cuts amount to 1.5% of its workforce.

Despite this, IBM's quarterly revenue of $16.7 billion beat Wall Street's estimate, the New York Times noted.

"The strategic transformation we started two years ago is well underway. Ongoing strong demand for our solutions demonstrates SAP's leadership in the global enterprise application market and the unique value of our cloud portfolio to help customers solve their most pressing problems, from enabling business agility to strengthening supply chains and operating sustainably.  

Software company SAP also announced job cuts, of up to 3,000 employees, the company confirmed to CNET in an email. The layoffs amount to 2.5% of SAP's global workforce.

The company employed around 111,015 people last year, compared to 104,364 in 2021, the Wall Street Journal noted on Wednesday.