https://www.thelayoff.com/kyndryl
18 replies (most recent on top)
Heartless!!! Won't even give employees reduced from full-time to part-time benefits! It's un-Canadian! I'm forced to eat tacos and burritos 5 days a week and spaghetti 2 days a week. And it's ground chicken to boot!
This should be no surprise Their "Leadership" are the discards from the deck of Losers. Bet they have some really great PowerPoint decks flying around over there.
Losing 65% of its initial public value in 4 months is close to a record. (15% a month or almost 1% per work day) Heck of a job executive team It’s obvious you guys cut your teeth at IBM didn’t you?
"Success." ---> Very niiiiice!
Kyndryl was never supposed to make money. It was just used to lay off thousands of employees without paying severance and transfer a ton of debt.
Success.
IBM still holds kindryl stock so this may cost IBM a billion or two.
Stick shaker is going off and that mechanical voice is repeating “pull up pull up” A bad business plan is a bad business plan and it is obvious to the world. We have reached the “contract value” of Kyndryl. (Eg what is the current contract profit worth if experienced management is put in place) Get ready for the body shops to bid Pennies on the dollar.
"IBM no longer has a GTS sinkhole"
OK
How many GBS employee's does it take to change a light bulb?
None, they'll all sit around in the dark blaming GTS
oy vey
Kyndryl Stock Hits a New Low. A Turnaround Is Still Years Away. --
https://www.barrons.com/articles/kyndryl-stock-earnings-51646168273
By: Eric J. Savitz March 1, 2022 3:58 pm ET
Kyndryl continues to face a tough reception in the public market following the company’s spinoff from IBM late last year.
IBM (ticker: IBM) spun off Kyndryl (KD) as part of its plan to shed slower growing and lower margin assets, and to return the company to profitability. Kyndryl runs IT data centers and provides other related services for large technology buyers, competing with Indian technology outsourcing companies like Wipro and Tata Consultancy Services.
Kyndryl has laid out a turnaround plan, but it’s taking time. The company has targeted 2025 for a return to revenue growth. Meanwhile, Kyndryl expects to continue to shrink. And the company’s December quarter financial results—released late Monday—did nothing to improve investor sentiment about the company’s outlook.
For the fourth quarter, Kyndryl posted revenue of $4.6 billion, down 8% from a year ago. The company had a loss of $740 million, or $3.30 a share, with pro forma Ebitda, or earnings before interest, taxes, depreciation and amortization, of $667 million. Full year pro forma revenue was $18.5 billion, down 3%, and at the low end of the company’s forecast. The company had a full year net loss of $2 billion.
Kyndryl stock is down more than 16% Tuesday, to $13.28, trading as low as $13.24, a new post-spinoff low. The company’s market value has fallen to $3 billion.
Kyndryl has been making a push to sign new strategic partnerships, inking deals with all three of the major public cloud players— Microsoft (MSFT) Azure, Amazon ‘s (AMZN) AWS, and Alphabet ‘s (GOOGL) Google Cloud. Kyndryl said Monday that it has a three-part plan to improve growth and profitability, including increasing contact signings, changing its service delivery model, and boosting margins. The company said it is targeting $200 million in annualized cost savings by the end of the March 2023 fiscal year.
Kyndryl expects its March quarter revenue to be down about 5% on a pro forma, constant currency basis compared with the year ago period, which implies $4.5 billion. The company sees adjusted Ebitda margin of 12% to 13%, with a pretax margin of -1%. Kyndryl also said it is shifting to a March fiscal year, to move away from a year-end near the holiday season.
CFO David Wyshner said on a conference call with investors that results for the March 2023 fiscal year “will look in many ways like full year pro forma [calendar] 2021 results,” with year-over-year declining revenue, midteens adjusted Ebitda and pretax income around break-even.
“Obviously, this is not where we expect our results to be once our major initiatives are having a greater impact on our P&L and once we return to revenue growth in 2025,” he said. “But the nature of an infrastructure business is that it does not turn on a dime, even though we’re making rapid progress in expanding our technology alliances, and even though the initiatives we’re implementing this year represent large opportunities for us.”
The results did nothing to change Wall Street’s concerns that Kyndryl’s revenue is shrinking, with the company still unprofitable and not returning capital to investors. While the stock is cheap on a price-to-sales basis, there are few obvious near-term catalysts for the shares. Meanwhile, yield-oriented IBM holders who received Kyndryl stock in the spinoff were never likely to hang on to the shares, which offer no dividend.
IBM no longer has a GTS sinkhole to pile losses into or syphon GP from to hand out to the other brands.
Data centers are expensive. Kyndryl always expected to announce a loss due to the goodwill, BUT the loss of 2 billion is quite large. It kinda adds up 1 billion goodwill and extras, then a 5% shrink on 18.5 billion. Kyndryl is in big trouble and all of the lipstick isn’t going to dress the old girl up. Expect some of the Indian body shops to start kicking the tires as Kyndryl’s market cap is below 3 billion. Think about that You can buy 18.5 billion of revenue for less than 3 Someone will jump on it. IBM still has a very large vested interest in Kyndryl’s success, but only in the larger margin businesses. GTS should have never been in help desk, and other low margin parts of the business. A 50% haircut is most likely in order, and yes it’s going to hurt
Barron's also has an article out on KD, but I think it requires subscription to read. TLDR is things are not going well.
Kyndryl is still in business?
Keep your eye on the goodwill It’s easy to add goodwill, but it’s quite hard to discard it IBM’s goodwill exploded under Sam and Ginni
At least Kyndryl business can no longer be shown as profitable by financial engineering IBM Mainframe deals (turning instant profit into a long term revenue stream with little profit if any at all). It was a bad idea then, and now it is luckily impossible after the separation of IBM and KD.
In the region I work, this led to a substantial declining IBM business over the past 5-10 years. Why this kind of financial engineering was allowed by those at the helm I will probably never understand. I raised my voice but was overruled again and again.
Root cause appeared to be lack of proper IBM management and extremely weird measurement systems.
GTS was a millstone and these results prove it. Why IBM kept the millstone for so long is a great question to ask Ginni. Kyndryl will have to restructure if they ever hope to turn the corner. Approx 50% of the work Kyndryl engages in, should be abandoned as it is not profitable.
... and you were expecting what? Thanks god they are not part of IBM anymore... Now, after this, if IBM is unable to make a significant profit, then IBM is in real trouble!
They are done for