IBM may be set to announce big layoffs this week.
IBM (IBM) shares were higher in early trading on unconfirmed reports that it’s getting set to slash 26% of its workforce, or nearly 112,000 jobs as part of reorganization plan dubbed "Project Chrome." The massive jobs cuts would be the biggest in IBM's history and comes after the company reported its 11th straight quarter of declining revenue. However, CNBC Jon Fortt is reporting that the number of layoffs could be much smaller, in the range of 10,000 or less.
Yahoo Finance reached out to IBM and they sent us this statement:
"IBM does not comment on rumors, even ridiculous or baseless ones. If anyone had checked information readily available from our public earnings statements, or had simply asked us, they would know that IBM has already announced the company has just taken a $600 million charge for workforce rebalancing.
Last year, IBM hired 45,000 people, and the company currently has about 15,000 job openings around the world for new skills in growth areas such as cloud, analytics, security, and social and mobile technologies. This is evidence that IBM continues to remix its skills to match where we see the best opportunities in the marketplace.”
Microsoft (MSFT) getting set to kick off a big week for tech earnings. The company is scheduled to release quarterly results for the last three months of 2014 after the stock market closes. Investors will be looking to see how holiday sales of its Xbox One and Surface tablet fared after an aggressive ad campaign. Analysts expect Microsoft to report record revenue of $26.3 billion dollars, but profits are seen slipping from a year earlier to $0.71 a share.
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D.R. Horton (DHI) shares were sharply higher after the nation's largest homebuilder reporting earnings and revenue that topped analysts' estimates. Revenue jumped 38% from a year earlier as the company sold more homes.
AT&T (T) shares are also in the spotlight this morning. The wireless provider is expanding its footprint in Mexico. AT&T is buying Nextel Mexico from NII Holdings for about $2 billion. The deal will give AT&T access to 76-million people in Nextel Mexico's network.
Cablevision (CVC) also on investors’ watch list. The company is becoming the first cable provider to offer WiFi for mobile phones. The service--dubbed Freewheel--will begin in the New York area where Cablevision already has more than a million WiFi hot spots.
