Thread regarding IBM layoffs

More like 2500 in RTP than 7500

[Complete article from OP's post quoted below].

IBM dodges major blow from DOGE, tariffs --

IBM executives say DOGE, tariffs have minimal impact on revenue streams.
Federal spending cuts are hitting IBM, executives told analysts Wednesday on an earnings call after markets closed.
But they're not too concerned.

By: Lauren Ohnesorge – Senior Reporter, Triangle Business Journal
Apr 23, 2025

IBM (NYSE: IBM), one of the region's largest employers with thousands of workers based in Research Triangle Park, reported revenue for its latest quarter at just over $14.5 billion, a 0.6 percent increase from last year. IBM’s consulting business, which includes a slew of federal contracts, contributed just over $5 billion in revenue, down 2 percent.

CEO Arvind Krishna told analysts the firm's consulting business is just “more susceptible to DOGE," referencing the Department of Government Efficiency helmed by Tesla owner Elon Musk.

“Most of the cases, the work we tend to do is much more mission critical, it’s much more about building the government systems to make them more efficient, and so we see them carry on,” Krishna said.

IBM CFO Jim Kavanaugh told Bloomberg DOGE had delayed or cut 15 federal contracts with the company.

Kavanaugh said IBM’s federal business is less than 5 percent of the company's total revenue. Of that amount, 60 percent is consulting and 40 percent is in high-value technology. Federal consulting is less than 10 percent of IBM’s overall consulting business, he said.

Krishna said the company, with more than $17 billion in cash on its balance sheet, is focusing on what it can control, such as accelerating its productivity initiatives and analyzing its supply chain. “We have not seen a material change in client buying behavior,” he said.

“While we are seeing clients delay decision making … we had good growth in transformational offerings like hybrid cloud and data as well as application management and cloud platform engineering services,” Kavanaugh said.

Tariffs mean “minimal” impact, Kavanaugh told analysts. He said goods imported to the U.S. make up less than 5 percent of IBM's overall spend. “Over the last several years we have strategically diversified and streamlined our supply chain,” he said.

Software revenue grew 7 percent to more than $6.3 billion. And the hybrid cloud business that includes Red Hat, which is headquartered in Raleigh, rose 12 percent. Of Red Hat, Kavanaugh said executives were "very pleased" with its performance.

Krishna said IBM’s AI book of business — a favorite talking point in past earnings calls — has grown to $6 billion.

IBM was trading down 5.3 percent at $232.50 in after-hours trading Wednesday

IBM is a significant player in the Triangle, with about 7,500 employees based in RTP. The company recently restructured, a move that did mean layoffs in North Carolina.

Expect the cost cutting to double or triple...
I would not be surprised if we see a layoff every quarter this year.