By Will Feuer
Kyndryl Holdings raised its cost-savings targets for the current fiscal year, citing progress using automation to streamline operations and the removal of low-margin parts of legacy contracts.
From Kyndryl’s efforts to create savings by automating work and upskilling workers, the company now expects to generate annualized savings of $550 million by the end of the current fiscal year, up from $450 million.
Its initiative exiting low- or zero-margin parts of legacy contracts, Kyndryl is targeting $500 million in annualized savings by the end of fiscal 2024, up from $400 million.
The company, which was spun off from International Business Machines in 2021 and provides information-technology-infrastructure services, said it is now targeting at least $140 million in adjusted pretax income for the fiscal year, up from prior guidance for at least $100 million.
Kyndryl narrowed its revenue outlook to a decline of 6% to 7% on a constant-currency basis, compared with prior outlook for a 6% to 8% drop.
The use of AI and automation across its workforce has helped Kyndryl streamline operations and free up employees for more high-impact work, Chief Executive Martin Schroeter said in an interview. “We’re well ahead of the pace that we thought that we could get done,” he said.
Write to Will Feuer at [email protected]
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