In its forecast, IBM said free cash flow in fiscal 2023 is expected to be US$10.5 billion while revenue will increase in the mid-single digits. Analysts, on average, estimated US$9.18 billion of free cash flow and annual sales growth of 1.2%, according to data compiled by Bloomberg.
International Business Machines Corp. delivered an upbeat annual sales forecast while announcing it would eliminate about 1.5% of its global workforce, following similar job cuts in the past few months by many of its technology peers.
The reductions will amount to a “ballpark” figure of 3,900, chief financial officer James Kavanaugh said Wednesday in an interview. The cuts will focus on workers remaining after spinning off the Kyndryl and Watson Health units and will cost the company about US$300 million, he said. IBM still expects to hire in the “higher-growth areas,” Kavanaugh said.
