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A historic technology company joins the wave of layoffs from Google, Microsoft and Meta: IBM

The company reported 3,900 fewer jobs.

Another of the technological giants of the United States began a massive layoff plan. IBM announced this Thursday that it will do without 3,900 employees at oncethus adding to the recent announcements of other “Big Tech” from Google, Amazon, Microsoft and Meta.

Precisely, the multinational founded in 1911 and recognized for massively introducing PCs in the 80s, will reduce about 1.5% of its global plant. However, the cut is not linked to the financial results for 2022 or the outlook for 2023, a company spokesperson told AFP.

2022 was the second consecutive year with an expansion in profits, after almost a decade of stagnation for the company, and the company was one of the few in the sector to have an increase in its shares on the stock market (5.4%), according to the Bloomberg agency.

IBM joined the cuts by Google, Amazon, Microsoft and Meta. Photo: Reuters.

For the fiscal year of 2023, meanwhile, IBM – which currently employs 260,000 employees – expect an increase in earnings of around 5%, and an expansion of sales of 1.2%.

According to the firm, the cuts are linked to the spin-off of some businesses, including Kyndril, a company formed from the business infrastructure services provided by IBM, and Watson Health, a data and artificial intelligence company for the health sector. .

Despite the cuts, IBM, like other tech companies that recently announced layoffs, plans to continue hiring in “high-growth” areas, according to the firm’s chief financial officer, James Kavanaugh, as it shifts to services. in the cloud, an area whose revenues increased by 11% per year in 2022.

The European SAP also reduces its staff

The headquarters of the German software firm SAP in Walldorf, near Heidelberg, Germany.  Photo: AP.

The headquarters of the German software firm SAP in Walldorf, near Heidelberg, Germany. Photo: AP.

Another of the companies to announce a “restructuring” was SAP, which also announced the elimination of 3,000 jobsequivalent to approximately 2.5% of the 120,000-employee plant worldwide.

The firm, of German origin and which offers software and services in the cloud for business management, stated that it plans to carry out a “specific restructuring program” to “strengthen its core business” and improve its performance.

This personnel reduction, according to the firm, will imply a cost of between 270 million and 330 million dollars, especially in the first quarter of this year, but with which it expects to save from 2024 between US$327 million and US$382 million per year. year.

Christian Klein, CEO of SAP.  Photo: EFE.

Christian Klein, CEO of SAP. Photo: EFE.

As in the case of IBM, the CEO of SAP, Christian Klein, affirmed that the cuts are linked to the company’s strategy focusing on areas where greater growth is expected, and not to the economic performance of the firm.

Similarly, SAP is transitioning to a greater focus on cloud services.

While both firms denied that the cuts were linked to difficulties in the global economic environment or a decline in their profits, the layoffs coincide with a series of similar moves at other big tech firms.

Alphabet, Google’s parent technology company, announced last week the dismissal of 12,000 employees, equivalent to 6% of its workforce worldwide, admitting that in recent years there have been hiring processes that, although adequate in their moment, they proved excessive in the current economic reality.

Added to the layoffs at Google this month are 10,000 (5% of its total plant) from Microsoft, and 18,000 from the e-commerce firm Amazon.

Meta – parent company of Facebook, Instagram and WhatsApp – anticipated in November that it will lay off 11,000 workers, 13% of its workforce.

In the same way, the magnate Elon Musk, the new owner of Twitter, fired about 3,700 employees (50% of the positions); and Snapchat and Salesforce did the same with 1,200 (30%) and 7,000 (10%).

In total, 219,132 people have been laid off in the technology sector since last year, according to the monitoring page Layoffs.fyi, which compiles the various announcements of cuts.

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