IBM laid off 3,900 people on Wednesday because it was selling off some assets and didn't meet its annual cash goal.
The company's shares fell by 2 percent in after-hours trading because of the job cuts and the shortfall in free cash flow.
The layoffs are related to the company's decision to split off its Kyndryl business and a part of its Watson Health AI unit. They will cost the company $300 million from January to March.
The company predicted that its annual revenue growth would be in the mid-single digits, which is less than the 12 percent growth it reported last year.
Overall, IBM's sales stayed the same during the time period, at $16.69 billion. In 2022, however, they grew by 5.5 percent, which was the most growth they had seen in a decade.
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