IBM layoffs 3900 announced... IBM's shares deep red after hours looks like Wallstreet isn't impressed with the results and outlook. When Google's announced layoffs its shares jumped...
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Damn, are we getting close to repeat of history? At some point IBM was very close to being unable to make payments. It came back from that, but is this what is happening again?
Manipulating the message to Wall Street all these years, seems to have caught up with IBM
https://www.marketwatch.com/story/ibm-posts-biggest-annual-sales-increase-in-more-than-a-decade-announces-layoffs-11674682960?rss=1&siteid=rss
IBM was able to grow revenue largely because it posted its smallest sales total since 1987 last year
Good point re inflation as 2011 dollars vs today's aren't the same. So if you factor inflation, IBM's revenues and earnings declined vs 2021?!
Arvind bought Redhat for $34B in 2019. 4 years later what can he show for spending a huge amount on? Growth? Oh it takes time wait 10 years... We've seen that movie before with Ginny the 5 imperatives Watson Softlayer buying and so many experiments leading to just more decline.
Adjusted for inflation not just currency could show a very ugly picture!
Looks even worse when you adjust those historical numbers for inflation. $106.9B in 2011 is $139.1B in todays dollars. IBM is way less than half the size today as it was a decade ago.
AK was just saying no more layoffs no..? 3900 layoffs isn't all for 2023... It's for now... Who knows how many more... 2023 will be a long cold hearted year at IBM it seems unfortunately. Also hasn't fixed anything. Looks worse to me after huge Redhat buying and... Doesn't move the scale much... Plus possible lawsuit on reporting revenues as cloud vs other segments I read? To hype all the strategy works great... Waiting another 10 years to find out like with the past Watson Ginny hyped? Next hype is quantum computing?
Net Income
2011 15.9
2012 16.6
2013 16.5
2014 12.0
2015 13.2
2016 11.9
2017 5.8
2018 8.7
2019 9.7
2020 5.5
2021 5.7
2022 1.6
Revenue $B
2011 106.9
2012 104.5
2013 99.8
2014 92.8
2015 81.7
2016 79.9
2017 79.1
2018 79.6
2019 77.1
2020 73.6
2021 57.4
2022 60.5
Very bad results... We've seen hyping Coolaid posts on quantum computing and be happy you've a job still etc other posts so here now we understand who may have posted such on a layoffs board ahead of the earnings and why...
With such a low cash flow IBM may have to cancel the divided and then what? Free fall?
The Free Cash Flow at $9.3B is HORRIBLE! The worst since (at least) before 2009! (I could only find data going back as far as 2009). AND YET ... IBM is committed to still paying out ~$6B in Dividends each year???
IBM Annual Free Cash Flow
2021 11,121.00
2020 15,767.00
2019 13,021.00
2018 12,100.00
2017 13,955.00
2016 13,941.00
2015 14,046.00
2014 13,532.00
2013 14,234.00
2012 15,914.00
2011 16,346.00
2010 16,134.00
2009 17,656.00