IBM Stock Rises on News of Planned Cuts to Marketing Division
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IBM stock rose over 3% on Tuesday after reports that the company is planning cuts in its marketing and communications division.
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The cuts are part of a wider trend in the tech industry of companies downsizing workforces.
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Factors driving cuts include inflation, reduced customer demand, and advances in AI replacing human roles.
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IBM previously stated it aims to replace almost 8,000 positions with AI.
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Investors reacted positively to the news of cuts, seeing them as IBM following through on plans to become a leaner operation.