Job cuts at big tech firms does not seem to take a breather as SAP and IBM became the latest in announcing layoffs joining the likes of Google, Microsoft, Facebook parent Meta, Amazon and other big tech titans.
IBM on Wednesday announced 3,900 layoffs as part of some asset divestments and missed its annual cash target, dampening cheer around beating revenue expectations in the fourth quarter, news agency Reuters reported.
In another development, SAP said on Thursday it planned to cut 3,000 jobs, or 2.5 per cent of its global workforce, and explore the sale of its remaining stake in Qualtrics, as the Germany software company looks to cut costs and focus on its cloud business.
Advertisement
SAP and IBM were the latest tech company to cut jobs after companies including Alphabet's Google, Microsoft and Amazon announced thousands of layoffs to cut costs as they brace for tougher economic conditions.
Big Tech firms and Wall Street titans are leading a string of layoffs across corporate America as companies look to rein in costs to ride out the economic downturn.
Rapid interest rate hikes, weak consumer demand and an economic slowdown in China have forced firms such as Amazon, Walt Disney, Facebook-owner Meta and American banks to trim their workforce.
As a pandemic-led demand boom rapidly fades, tech companies shed more than 150,000 workers in 2022, according to tracking site Layoffs.fyi, and more layoffs are expected as growth in the world's biggest economies start to slow.
Advertisement
(With agency inputs)
Just one email a week