https://seekingalpha.com/news/3972684-kyndryl-stock-drops-after-company-expects-2024-revenue-to-decline-6-8
I get that lousy pre spinoff contracts that were part of an IBM products package weren't profitable and now they're dumping them...and that other 'adjustments' have been the cutting of people, offshoring, and the planned moving to more advanced automation - all of which makes me think that maybe it's better to be cut from what will likely be a chaotic hellscape for the foreseeable future?
You can't have a successful AI company when your chief exec is a clueless bean counter.
"As long as they keep all those IBM legacy roll overs. This company is doomed to collapse"
I think you mean as long as they keep all the IBM cr-p roll over (Red Hat included)
they're doomed.
I agree
In repsonse to - @1yih+1mGqqWnx
This is exactly what they're doing already so you're not saying anything new. All of the internal discussions about strategy from management indicate that process is already underway.
The cuts will continue for some time as they readjust. I have a feeling alot of people that are feeling safe in their roles should take nothing for granted. Always be looking outside and keep your resume updated.
Kyndryl still needs to shed more workers from it's bloated IBM ranks. As long as they keep all those IBM legacy roll overs. This company is doomed to collapse. Listen when I say this cut,cut,cut your manpower asap. Then invest in automation, and A.I. Kyndryl has much leaner and more adaptable competition. Your competition does far more on a lot less manpower.
From the article -
Kyndryl (NYSE:KD) stock fell as much as 16.6% on Wednesday after the company, which spun off from IBM, said it expects a revenue decline for fiscal 2024.
On Tuesday after the bell, the company said it expects fiscal 2024 revenue to fall 6% to 8%, or between $16.0 and $16.4 billion on current FX rates.
The Seeking Alpha estimate for fiscal 2024 revenue is $16.47 billion.
The company posted Q4 GAAP EPS of -$3.24, missing estimates by $2.21.
Revenue of $4.26 billion was down 4% but beat consensus by $110 million.
During Q4, the company recorded workforce rebalancing costs of $55 million and expects to incur ~$95 million in fiscal year 2024 for the same. Stock is down 9.6% at $13. If current session losses hold, about half of the YTD gains will be wiped off.
Hellscape sounds about right.