---
title: "Kyndryl plans job cuts, forecasts pretax profit below estimates"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/285376603.md"
datetime: "2026-05-06T12:22:33.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/285376603.md)
  - [en](https://longbridge.com/en/news/285376603.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/285376603.md)
---

# Kyndryl plans job cuts, forecasts pretax profit below estimates

May 6 (Reuters) - Software provider Kyndryl (KD.N) said it would cut jobs as part of a new cost-saving plan and forecast annual pretax profit below Wall Street estimates on Wednesday.

Shares of the company fell over 7% in premarket trading.

The company, which was spun off from IBM (IBM.N) in 2021, has been restructuring a number of low- or no-margin contracts it inherited from the tech giant to improve profitability.

-   The company said the plan would help reduce annual operating costs by about $400 million to $500 million in fiscal 2028.
-   It expects to record about $200 million in related charges, mostly for severance and employee benefits.
-   The cuts come after the software provider delayed the filing of its October-December report, made several management changes, and launched an accounting review over “potential weaknesses” found in its internal controls.
-   The company had about 73,000 employees as of March 31, 2025. Kyndryl did not disclose how many jobs would be affected by the move.
-   Kyndryl expects adjusted pretax income between $600 and $700 million in fiscal 2027, including workforce rebalancing charges. The midpoint of this range came in below analysts’ average estimate of $672.7 million, according to data compiled by LSEG.
-   Despite the challenges, the company has benefited from a resilient demand environment. Businesses have prioritized spending on essential software and IT services amid macroeconomic uncertainty driven by U.S. President Donald Trump’s ongoing global trade negotiations.
-   That trend has helped shield companies such as Kyndryl, whose services support day-to-day business operations and enable the integration of artificial intelligence technologies across enterprise systems.
-   Fourth-quarter revenue came in at $3.77 billion, beating estimates of $3.75 billion. Adjusted profit plunged to 18 cents per share, compared with estimates of 45 cents.

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