Short-Seller Jim Chanos Questions 'No-Growth' IBM's Rumored Move To Cut Jobs: 'AI As Much A Risk... As It Is An Opportunity'
Portfolio Pulse from Shanthi Rexaline
Short-seller Jim Chanos criticized IBM for its rumored job cuts and questioned the company's growth prospects, highlighting AI as both a risk and opportunity for IBM's business model. The Register reported IBM is seeking voluntary redundancies, targeting mainly the Enterprise Operations & Support and Q2C missions, Finance & Operations. IBM's Q4 results showed a 4% revenue growth, and CFO Jim Kavanaugh discussed productivity initiatives and AI-driven efficiencies aiming for $3 billion in cost savings by 2024. IBM's stock closed down 0.30% at $195.95.
March 11, 2024 | 8:12 am
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IBM faces criticism from short-seller Jim Chanos over rumored job cuts and its growth prospects, amidst efforts to enhance productivity and cost savings through AI.
The criticism from a notable short-seller like Jim Chanos, combined with the news of job cuts and the company's reliance on AI for growth, could negatively impact investor sentiment in the short term. Despite IBM's efforts to improve productivity and achieve cost savings, the skepticism expressed by Chanos and the potential job cuts may lead to a decrease in stock price as investors reassess the company's growth prospects and operational strategy.
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IMPORTANCE 90
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