Published 11:12 a.m. ET June 7, 2019 |
ON Semiconductor plans to hire at least the 950 employees directly supporting the East Fishkill site, according to the company
IBMÂ confirmed on Thursday that itâs laying off a small percentage of employees, confirming reports that appeared earlier in the day onÂ TheLayoff, an online message board.
A person familiar with the matter said the cuts affect about one half of one percent of employees. IBM has more than 340,000 employees, according to its lastÂ proxy statement, which means the cuts would affect around 1,700 employees.
It’s not yet clear what, if any, impact will be on the Poughkeepsie site.
âWe are continuing to reposition our team to align with our focus on the high-value segments of the IT market, and we also continue to hire aggressively in critical new areas that deliver value for our clients and IBM,â a company spokesperson told CNBC in an email. TheÂ companyâs jobs pageÂ lists 7,705 openings.
The trim comes as the Armonk-based company seeks to evolve its business through a major acquisition and meet its goal of growing profits.
IBM shares are up 16% since the beginning of 2019. In April the company reportedÂ first-quarter revenue that was down 5%Â year over year and below analystsâ expectations.
The layoffs come less than four months after IBM announced a $2 billion expansion in New York as it invests in developing artificial intelligence hardware.
And in January, the company announced it planned to open the first Q Computation Center, utilizing the IBM Q System One integrated quantum computing system, in Poughkeepsie.
IBM is in the midst of a plan to acquire open-source software giantÂ Red HatÂ for $34 billion. The deal is set to close in the second half of this year.
IBM has its own public cloud infrastructure for deploying applications, but in buying Red Hat, IBM has sought to also gain business fromÂ companies adopting other public clouds, likeÂ AmazonÂ Web Services andÂ MicrosoftÂ Azure, both of which have more market share, according toÂ Synergy Research Group.
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IBM announced job cutsÂ in 2016Â andÂ in 2017.
Earlier this month, Evercore ISI analysts Amit Daryanani and Irvin Liu highlighted the importance of the Red Hat deal as they initiated coverage of IBM:
âWhile IBM stock will likely be range bound near-term, as investors remain on the sidelines until they have better understanding of IBMâs financial profile post close of the Red Hat acquisition, our positive stance is based on our favorable view of the RHT deal which has the potential to be transformational as it significantly broadens IBMâs capabilities and customer reach,â wrote Daryanani and Liu.
Red Hat had 13,360 employees as of Feb. 28, according to itsÂ annual report.
In April, IBM said itâs looking forÂ at least $13.90Â in earnings per share, excluding certain items, for 2019. That would be up from $13.81 per share, excluding certain items,Â in 2018.
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