The Weekend Leader - IBM spinoff Kyndryl to layoff employees for 'profitable growth'

IBM spinoff Kyndryl to layoff employees for 'profitable growth'

New Delhi


Photo : IANS

IT infrastructure services provider Kyndryl, a spinoff of tech major IBM, is laying off an unspecified number of employees globally.

According to a report in CRN, Kyndryl which was spun out of IBM in late 2021 has about 90,000 employees.

"We are eliminating some roles globally - a small percentage - to become more efficient and competitive. This is in addition to the ongoing transformation work we have undertaken to streamline and simplify our processes and systems," a company spokesperson said in a statement.

These actions will "enable us to focus our investments in areas that directly benefit our customers and position Kyndryl for profitable growth," the spokesperson added.

Kyndryl reported revenue of $4.3 billion in its third fiscal quarter 2023, down 6 per cent from the previous quarter.

Tech giant IBM also announced to lay off 3,900 employees in January.

The layoffs will cause a charge of $300 million in the January-March period to the company, according to IBM Chief Financial Officer James Kavanaugh.

In its quarter ending December 31, 2022, the company delivered $16.7 billion in revenue, $3.8 billion of operating pre-tax income, and operating earnings per share of $3.60.

Kyndryl joins a slew of tech companies such as Meta, Alphabet, Microsoft, Google, Twitter and others in laying off lakhs of employees amid the global economic headwinds. - IANS

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