IBM says 15 contracts impacted by DOGE cost cuts, shares drop


FILE PHOTO: A view shows the IBM Australia building in Melbourne, Australia, March 24, 2025. REUTERS/Hollie Adams/File Photo

(Reuters) -International Business Machines said 15 of its government contracts were shelved under a cost-cutting drive by the Trump administration, a setback that eclipsed its upbeat revenue forecast and dragged its shares down over 6% after hours.

The federal consulting businesses of Big Blue's rivals, such as Accenture, have also taken a hit from belt-tightening efforts by the U.S. administration and its Department of Government Efficiency.

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