Kyndryl shares plunge after workforce cuts and weak profit guidance
Updated
Updated · The Motley Fool · May 6
Kyndryl shares plunge after workforce cuts and weak profit guidance
11 articles · Updated · The Motley Fool · May 6
The IBM spinoff fell more than 12% after forecasting fiscal 2027 profit below Wall Street estimates, despite quarterly revenue of $3.77 billion, while adjusted earnings of 18 cents a share missed 45-cent expectations.
Kyndryl said the restructuring will include about $200 million in severance charges and aims to cut up to $500 million in annual costs by 2028 by exiting low-margin legacy contracts.
The overhaul follows management turnover and an internal accounting review, though the company said demand for core IT infrastructure and integration services remains resilient as businesses invest in systems supporting AI.
Can Kyndryl's pivot to AI-focused services and automation reverse its fortunes, or will legacy challenges continue to weigh down its future?
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