IBM, SAP layoffs: Thousands of job cuts as Q4 earnings announced – USA TODAY

IBM and SAP have joined a slew of other tech giants cutting thousands of jobs in response to the slowing global economic outlook and waning demand for some digital services.
IBM announced the cuts, some 3,900 positions, or 1.5% of its global workforce, on Wednesday. SAP, Europe’s largest software company, will lay off 2.5% of its global workforce of 112,000, or around 2,800 employees, according to an earnings report published Thursday.
SAP CEO Christian Klein said that the “targeted” cuts will allow the company to invest in the areas “where it really matters for SAP to be competitive in the future” – particularly its cloud business – while dealing with pressures from a slowing global economy. 
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Last week, Klein suggested that the firm would avoid having to lay off workers, as it is “in a very strong position,” in an interview with CNBC.
The layoffs come the same day both companies announced their fourth quarter 2022 earnings results.
“Our solid fourth-quarter performance capped a year in which we grew revenue above our mid-single digit model. Clients in all geographies increasingly embraced our hybrid cloud and AI solutions as technology remains a differentiating force in today’s business environment,” Arvind Krishna, IBM chairman and CEO wrote in a statement. “Looking ahead to 2023, we expect full-year revenue growth consistent with our mid-single digit model.”
IBM’s fourth quarter highlights included:
Full-year highlights also showed revenue of $60.5 billion, up 6%, the company wrote in its release.
Klein wrote Wednesday that SAP ended 2022 “with continued strong cloud momentum and a return to operating profit growth in the fourth quarter, marking an important inflection point.”
“Heading into 2023, this gives us great confidence in delivering on our promise of accelerating topline and double-digit non-IFRS operating profit growth,” Klein continued. 
SAP’s year-end earnings showed cloud revenue was up 33% in FY 2022. The company also announced it was exploring a sale of its stake in U.S.-based software company Qualtrics.
Monday, Spotify announced it would cut 6% of its workforce.
Last week, Amazon began laying off thousands of employees. On Jan. 4, Amazon CEO Andy Jassy announced the company planned to cut more than 18,000 employees “between the reductions we made in November and the ones we’re sharing today.”
New layoff notifications for about 8,000 employees began last week – just months after an initial round of 10,000 job cuts.
Also last week, Microsoft announced 10,000 job cuts, or nearly 5% of its workforce. And Facebook parent Meta announced 11,000 job cuts, or 13% of its workforce, in November.
IBM’s New York Stock Exchange stock dipped more than 4% in early trading Thursday.
SAP’s New York Stock Exchange stock dipped more than 1.5%  in early trading Thursday.
Camille Fine is a trending visual producer on USA TODAY’s NOW team. 
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