24/7 Wall St.

It is no secret that International Business Machines Corp. (NYSE: IBM) has been a lagging stock. It hasn’t helped out that IBM is a Dow stock, nor that Warren Buffett keeps buying up its shares even though Berkshire Hathaway already is the largest shareholder.

Now comes a note from Wells Fargo that IBM is starting to execute on an announced restructuring. Maynard Um, the Wells Fargo analyst behind the call, sees IBM continuing to restructure its workforce to align with strategy.

Monday’s report said:

Media sources (WSJ) noted IBM is laying off several thousand employees in multiple U.S. locations as the company restructures and realigns itself to move more toward cognitive solutions and cloud platforms. We believe these layoffs are part of the restructuring the company has already announced. Besides the strategic initiatives, we believe restructuring is also to reduce costs by moving to low cost regions (some jobs are believed to be moving to India and Costa Rica).

24/7 Wall St.
5 Major Tech Stocks Winning Even in a Weak Market