IBM, one of the world’s leading enterprise IT products companies, announced that it would phase out some of its units and lay off 3,900 people in this context, and would not be able to meet its annual cash target.

The company posted higher-than-expected revenue on its fourth-quarter balance sheet, announced yesterday after US stock markets closed, but free cash flow missed the $10 billion target of $9.3 billion for the whole year.

Shares of the company fell 2 percent, giving back gains it made after the above-expected balance was announced in after-hours trading.

‘RECHARGE WILL CONTINUE IN DIFFERENT UNITS’

Although IBM announced that the Kyndryl and Watson Health units have been pulled from the company and 3,900 people will be laid off in this context, analysts pointed out that the ratio of layoffs to total employees was “only 1.5 percent” and that the shares declined for this reason.

Speaking to Reuters, Chief Financial Officer James Kavanaugh said the company will continue to recruit customer-focused research and development staff. (Reuters)