IBM and SAP are the latest technology giants to announce layoffs following fourth-quarter earnings reports.

On the heels of job cuts from Microsoft, Amazon, and Salesforce, IBM said it will pay out $300 million in the first quarter for severance costs associated with nearly 4,000 job cuts, or 1.5% of its global workforce.

The company attributes the layoffs to its 2021 sale of Kyndryl and its health care data analytics business, as well as what CFO Jim Kavanaugh said were “some external factors that we faced this past year that impacted our profit and cash,” including IBM’s decision to exit “a profitable business” in Russia and inflation in the U.S.

"Our solid fourth-quarter performance capped a year in which we grew revenue above our mid-single digit model. Clients in all geographies increasingly embraced our hybrid cloud and AI [artificial intelligence] solutions as technology remains a differentiating force in today's business environment," CEO Arvind Krishna wrote in a statement. "Looking ahead to 2023, we expect full-year revenue growth consistent with our mid-single digit model."

SAP plans to cut up to 3,000 jobs, or about 2.5% of its workforce. The German enterprise software firm said in a statement it will conduct “a targeted restructuring program in selected areas of the company.”

“We are further focusing our portfolio in areas where we are strongest to continue our accelerated growth,” CEO Christian Klein said during the company’s fourth-quarter 2022 earnings call.

Around $300 million in restructuring costs associated with the program is expected to be recognized in the first quarter 2023, impacting operating profit, SAP said in an announcement. The program is expected to provide a moderate cost benefit in 2023, and more than $300 million in annual cost savings beginning in 2024.

Calling SAP “more resilient than ever,” Klein said the company ended 2022 with “continued strong cloud momentum and a return to operating profit growth in the fourth quarter, marking an important inflection point.”

In addition to the layoffs, SAP is also looking to sell its stake in Qualtrics, a move the company said is “in line with SAP’s strategic initiative to streamline its portfolio.”

SAP bought Qualtrics in 2018 for $8 billion, and brought the company public in 2021 for IPO proceeds of $1.55 billion. Since the acquisition, Qualtrics has tripled revenues to $1.5 billion.

“This would be a continuation of the strategy we set at the time of the Qualtrics IPO in 2021,” SAP explained in a statement. “SAP believes that this potential transaction could unlock significant value for both companies and their shareholders: for SAP, to focus more on its core cloud growth and profitability; for Qualtrics, to extend its leadership in the XM [experience management] category that it pioneered.”

Qualtrics' stock surged as much as 27% following the SAP announcement.