IBM and SAP are the latest companies in Silicon Valley to announce their plans to cut thousands of jobs, following similar moves made by Spotify and Alphabet earlier this week.
IBM has revealed it will cut around 3,900 jobs, amounting to 1.5 per cent of its global workforce. The layoffs will cost the company about $300m (£242m) this quarter, a spokesperson confirmed.
German software giant SAP also said it planned to lay off 2.5 per cent of its global workforce of 112,000, amounting to around 2,800 jobs. The restructuring will cost SAP between €250m (£219m) and €300m (€263m).
The companies have explained the layoffs as part of an effort to restructure their businesses towards specific products and models.
An IBM spokesperson told CNN that the layoffs were "entirely related" to the spin-off of Kyndryl and the disposal of health data and analysis businesses and that it was “not an action based on 2022 performance or 2023 expectations.”
Kyndryl...