IBM cuts 3,900 jobs as tech layoffs continue

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.

Also watch: What is behind the mass layoffs in the tech industry?