Mar 30, 2023
IBM Spinoff Kyndryl Cuts ‘Small Percentage’ of 90,000 Workforce
(Bloomberg) -- Kyndryl Holdings Inc., a 2021 spinoff from IBM with about 90,000 employees worldwide, is the latest technology company to shed workers in a turbulent time for the industry.
The company announced cuts internally this week that amounted to a “small percentage” of Kyndryl’s global workforce, a company spokesperson said Wednesday. “These actions will enable us to focus our investments in areas that directly benefit our customers and position Kyndryl for profitable growth,” he said.
Kyndryl split from International Business Machines Corp. in November 2021, taking a large chunk of a legacy infrastructure services business that had been a drag on growth. While the company last month reported that fiscal third-quarter revenue declined 6% to $4.3 billion, the sales topped analysts’ estimates, sending shares up 21% the next day.
It joins numerous tech peers in culling staff, including its old parent company, which eliminated 3,900 jobs earlier this year.
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