IBM Plans Layoffs, New Investments

IBM keeps meeting ever-higher earnings-per-share targets, but after reporting another year of declining growth in 2013, the company on Tuesday announced plans for "workforce rebalancing" -- code words for layoffs -- as well as new investments in emerging areas aimed at returning the company to growth.

Its lackluster performance in 2013 was marked by a 5% year-over-year decline in revenue (2% in constant currencies) to $99.8 billion. Operating income was up 2% from the prior year to $18 billion, despite a whopping $1.7 billion decline in profit tied to IBM's struggling hardware business.

Declining sales and currency headwinds notwithstanding, IBM managed to pull out a 7% (non-GAAP) year-over-year increase in earnings per share to $16.28. That financial feat was achieved through a combination of share repurchases, positive tax windfalls, and margin improvements.

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Doug Henschen is Executive Editor of InformationWeek, where he covers the intersection of enterprise applications with information management, business intelligence, big data and analytics. He previously served as editor in chief of Intelligent Enterprise, editor in chief of ... View Full Bio