Tech and counseling giant IBM was not immune for the Government Efficiency Department (DOGE) deduction.
According to reporting by Reuters and Bloomberg, IBM canceled its 15 federal contracts due to the dog deduction during the first quarter of 2025. According to Bloomberg, this deduction in future payment is $ 100 million. Federal contracts represent 5% and only 10% of IBM consulting exercises.
After answering questions during IBM’s earnings call during IBM CEO, IBM CEO, IBM CEO, it was clarified that the cancellation was related to cutbacks in USAID. Krishna and James Kawanugh, CFO of IBM, then proceeded to reduce the possible impact of Dogi on the company’s future business.
“We have a handful of contracts, either the statement of work, or cancel and in the total consultation on our annual backlog of more than $ 30 billion,” Kavanogh said. “This is like a backlog less than $ 100 million over a period of many years. So whenever there is no immune of anyone, we are fully focused on monitoring the dynamic process of identity. We are judiciously alertly alert around the consultation for the year.”
IBM’s counseling business created 34% of the company’s revenue in Q1. Krishna said that the company’s federal government counseling contract focuses largely on important areas.
Krishna said, “The vast majority is an important task – we actually process the claims of the benefits of the veterans.” “How do we help in the process how [General Services Administration] Purchases. We help in implementing the payroll system. I do not consider them alternative to them. Now, are there some areas around the edges that can be seen as discretionary? Yes. But in our case it is the minority of our business, not majority. ,
According to the company’s first quarter results, IBM counseling was 2% below the total in Revenue Q1. The revenue from consultation in Q1 was slightly more than $ 5 billion.
Krishna said, “Diversity in our business keeps us well to navigate the current climate.” “The track record of our portfolio and execution strengthens my confidence on this next chapter of our development. I am eager to share my progress because we move through the rest of the year.”
