IBM spin-off Kyndryl is in the process of laying off an unspecified number of employees, making the global infrastructure services provider the latest technology company to go through a round of layoffs.
The Kyndryl layoffs, first reported by Bloomberg, were confirmed by Kyndryl in a statement emailed to CRN.
“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. These actions will enable us to focus our investments in areas that directly benefit our customers and position Kyndryl for profitable growth,” a Kyndryl spokesperson said in the statement.
[Related: Kyndryl CEO: Moving Out Of IBM’s Shadow With $1B In Pipeline]
Kyndryl, which has about 90,000 employees, in late 2021 was spun out of IBM where the company was previously known as IBM’s managed infrastructure services business.ADVERTISEMENT
IBM itself in January confirmed that it is laying off a reported 3,900 employees.
Kyndryl’s planned layoffs come after the company reported revenue of $4.3 billion in its third fiscal quarter 2023, which ended December 31, down 6 percent from the previous quarter.
Net loss on a GAAP basis of $106 million or 47 cents per share was down significantly over the net loss of $731 million or $3.26 per share the company reported the prior year.LEARN MORE: Professional Services
Joseph F. Kovar is a senior editor and reporter for the storage and the non-tech-focused channel beats for CRN. He keeps readers abreast of the latest issues related to such areas as data life-cycle, business continuity and disaster recovery, and data centers, along with related services and software, while highlighting some of the key trends that impact the IT channel overall. He can be reached at [email protected].
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