IBM says multiple contracts cancelled following US government DOGE probes - but it's not worried
techradar.com
- DOGE's cancelled contracts could cost IBM up to $100 million
- IBM's consulting business is worth $5.1 billion, down 2% year-over-year
- IBM is still banking on revenue growth, noting continues interest in artificial intelligence
IBM CFO James Kavanaugh has revealed 15 federal contracts between the US government and the tech giant had been cancelled, paused or suspended as a result of Elon Musk's DOGE efficiency initiative, potentially costing the company up to $100 million.
Both Kavanaugh and IBM CEO Arvind Krishna later downplayed the impact of DOGE's cutbacks, citing them as a small fraction of their $30 billion consulting backlog.
"This is like less than $100 million of backlog over a duration of multiple years," Kavanaugh said.
IBM loses US government contracts due to DOGE
The news came as IBM announced its first-quarter results for fiscal year 2025, noting a small 1% year-over-year ...
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