IBM, Tech Giant, to Lay Off Nearly 4,000 Employees

IBM, American Technology Company, Announced That It Will Lay Off Thousands Of Professionals This Year. The Mass Layoff Will Result In An Expense Of R$ 1.5 Billion.

The 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 lay off 3,900 employees from its workforce. The cuts are motivated by a result that was already expected in the financial statement for the last year and also by the decision to dispose of some assets in the market.

Mass Layoffs Will Cost IBM R$ 1.5 Billion In Expenses

According to information from James Kavanaugh, the company’s Chief Financial Officer, despite the many layoffs, IBM is committed to hiring in areas focused on improving customer relations.

The company tech giant estimates that the layoffs will result, from January to March 2023, in an expense of US$ 300 million, equivalent to R$ 1.5 billion in direct conversion.

The recent announcement of the mass layoffs resulted in a 2% drop in the extended trading of the American giant. Also on Wednesday, IBM revealed its fourth-quarter results, with a revenue of US$ 16.7 billion.

The total revenue for the last year was estimated at US$ 60.5 billion. However, the statement did not mention the mass layoff of employees. In the report, the company mentions that it expects revenue growth for this year consistent with a mid-single digit model. According to Arvind Krishna, President and CEO of IBM, its solid performance in the fourth quarter culminated in a year when the company expanded revenue above its mid-single digit model.

Clients across all locations increasingly used its hybrid cloud and Artificial Intelligence (AI) solutions, as technology continues to be a differentiating force in the current business environment.

IBM Joins Other Companies In The Sector

IBM is a technology company that provides artificial intelligence and computing solutions, offering integrated products that use technology and data from information in industry and business processes. Its sectors include software, infrastructure, consulting, and financing.

It is important to remember that IBM is not the only company laying off staff. The big techs claim to have been impacted by a slowdown in spending, while concerns about a possible recession and the economy persist, leading to a wave of layoffs.

Last week, Alphabet, Google’s Parent Company announced plans to lay off about 12,000 employees worldwide. The decision came after other market giants announced job cuts, such as Meta, Microsoft, and Amazon.

John Deere Lays Off 85 Employees In Brazil

Agricultural machinery manufacturer John Deere, which produces sugar cane harvesters and sprayers, announced the layoff of 85 workers. In a statement, the company said that contracts with these professionals were terminated as there was a predetermined timeframe for such, and that the process is being carried out as transparently as possible.

The Metalworkers Union of Catalão (Simecat) reported that, at the beginning of last year, the company informed its plans to lay off approximately 200 of its employees due to a reduction of approximately 30% in the volumes of sprayers produced from 2022 to this year.

According to the company, the drop was from 2,550 to around 1,700. As a result, about 850 units stopped being manufactured, which created 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.