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Important points
- IBM stock rose more than 3% on Tuesday and was up slightly in premarket trading on Wednesday after the company notified employees of plans to cut jobs in its marketing and communications department.
- The company is rebalancing its workforce to prioritize skills in areas that best meet customer needs, such as artificial intelligence and hybrid cloud.
- IBM stock could find chart resistance near the peak of the triple top pattern, which would take the stock to $206.22, double the stock’s all-time high.
Legacy computing giant International Business Machines (IBM)’s stock is rising after the company notified employees in its marketing and communications department of plans to cut jobs.
Jonathan Adashek, IBM’s chief communications officer, announced the departmental staff cuts in a brief seven-minute meeting, according to people familiar with the matter. The job cuts come less than a year after CEO Arvind Krishna said: bloomberg In an interview, the company said it plans to pause hiring for roles that could be replaced by artificial intelligence (AI), adding that it plans to close about 8,000 jobs over the next few years, especially for non-customer-facing roles. It added that staff and employees performing their jobs could be replaced by technology. Back office functions.
Just recently, IBM said its “workforce rebalancing” would affect a small portion of its global workforce as it prioritizes skills in areas that best meet customer needs.
“In its fourth-quarter results earlier this year, IBM disclosed employee rebalance costs, which represent a very low single-digit percentage of IBM’s global workforce and are projected to be a very small percentage of IBM’s global workforce in 2024. “We expect the company to leave the company at approximately the same level of employment as when they joined the company,” a company spokesperson said.According to said market watch. “This rebalancing is driven by productivity improvements and our continued efforts to align our workforce with the most in-demand skills among our customers, particularly in areas such as AI and hybrid cloud. I am.”
IBM’s proposed job cuts follow other large tech companies, including Microsoft (MSFT), Alphabet (GOOGL) and Amazon (AMZN), which have cut jobs this year amid uncertainty over the macroeconomic environment and increased competition. Thing. In the enterprise AI race.
Looking at IBM’s weekly chart, the price continues to rise after breaking above the upper trend line of an ascending wedge pattern. If the stock price continues to rise from these levels, it is worth monitoring the triple top pattern that formed between April 2012 and March 2013 as a potential area of resistance. The third peak of this pattern also marks the stock’s all-time high (ATH) of $206.22. A breakout of this notable volume-backed level could open the door for further gains in the coming months.
IBM shares rose 0.1% to $197.90 in premarket trading Wednesday, about three hours before the opening bell. The stock rose 3.2% on Tuesday and is up more than 50% in the past year.
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As of the date this article was written, the author did not own any of the securities mentioned above.
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