IBM cuts about 3900 jobs – quarterly sales stagnate

Armonk As the next heavyweight in the tech industry, the computer group IBM is cutting several thousand jobs. There are about 3,900 jobs, about 1.5 percent of the global workforce, IBM CFO James Kavanaugh told Bloomberg. At the same time, new employees are to be hired in growth areas, as he announced.

IBM reported on Wednesday for the past quarter sales at the previous year’s level of 16.7 billion dollars (15.3 billion euros). The proceeds were thus slightly above the expectations of analysts. Meanwhile, profit grew 17 percent to $2.9 billion. The share temporarily fell by around two percent in after-hours trading after the figures were presented.

IBM boss Arvind Krishna is working on aligning the IT and consulting group more closely with the cloud business. For the past year as a whole, revenue from cloud offerings increased by 11 percent to $22.4 billion.

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