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IBM, an American company in the technology sector, announced that it will lay off thousands of professionals this year. Mass layoffs will result in an expense of BRL 1,5 billion.
A IBM, a company that works in the production and commercialization of hardware and softwares, including artificial intelligence systems, announced last Wednesday (25) that it will massively dismiss 3,9 employees from its staff. The cuts are motivated by an already expected result in last year's balance sheet and also by the decision to dispose of some assets on the market.
Mass layoffs will cost IBM R$1,5 billion in expenses
According to information from James Kavanaugh, the company's CFO, despite the many layoffs, IBM is committed to hiring people in areas focused on improving customer relations.
The company's estimate tech industry giant is that layoffs result, from January to March 2023, in an expense of US$ 300 million, equivalent to R$ 1,5 billion in direct conversion.
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The recent announcement of mass layoffs resulted in the US giant's extended trading slump of 2%. Also on Wednesday, IBM revealed its fourth-quarter results with revenue of $4 billion.
Last year's total revenue was estimated at $60,5 billion. However, the statement did not mention the mass dismissal of employees. In the report, the company mentions that it expects revenue expansion for this year consistent with the mid-single-digit model. Second Arvind krishna, president and CEO of IBM, his strong fourth-quarter performance capped off a year in which the company expanded revenue above its mid-single-digit model.
Customers in all geographies increasingly leverage their hybrid cloud and Artificial Intelligence (AI) solutions as technology remains a differentiating force in today's business environment.
IBM joins other industry players
IBM is a company in the technology sector that provides artificial intelligence and information technology solutions, providing integrated products that use information technology and data in industry and business processes. Its sectors include software, infrastructure, consulting and finance.
It's important to remember that it's not just IBM that is making massive layoffs. To the big tech claim they have been hit by a slowdown in spending, while worries about a possible recession and the economy persist, which has resulted in a wave of layoffs.
In the last week, Alphabet, parent company of Google, announced that it plans to lay off around 12 employees around the world. The decision came after other market giants announced employee cuts, such as Meta, Microsoft and Amazon.
John Deere lays off 85 employees in Brazil
Agricultural machine maker John Deere, which manufactures sugarcane harvesters and sprayers, announced the layoff of 85 workers. In a note, the company states that the contracts with these professionals were finalized considering that there was a determined deadline for this, and that the process is being carried out in the most transparent way possible.
The Metalworkers Union of Catalão (Simecat) reported that, at the beginning of last year, the company announced its plans to dismiss approximately 200 of its employees, due to a reduction of approximately 30% in the volumes of powder produced from 2022 to this year. .
According to the company, the drop was from 2.550 to about 1.700. As a result, around 850 pieces of equipment were no longer manufactured, which led to the need to reduce personnel. Since then, several meetings have been held between the company and SIMECAT, with the entity suggesting measures to avoid mass layoffs.
