IBM plans to cut $3.5 billion in costs in 2025, likely through workforce reductions and discretionary spending cuts. CFO James Kavanaugh emphasized cost savings to fuel AI and digital transformation investments. Despite an 11% drop in Q4 net profit to $2.9 billion, IBM saw a 9% stock price increase, with software now making up 45% of revenue.
Generative AI contributed $1.5 billion in new bookings, and IBM's AI business has grown to $5 billion. CEO Arvind Krishna highlighted AI’s role in IBM’s strategy, with products like WatsonX and OpenShift AI gaining traction. IBM forecasts 5% revenue growth and $13.5 billion in free cash flow for 2025.
Related News