Kyndryl Holdings’ (KD) stock is down a staggering 40% on news that its chief financial officer (CFO) is leaving amid an “accounting review” at the information technology (IT) service provider.
Kyndryl, which is a spin-off of technology giant IBM (IBM), said CFO David Wyshner has departed the company and Edward Sebold has left as general counsel, effective immediately.
“The company, through the Audit Committee of its Board of Directors, is reviewing its cash management practices and related disclosures,” said Kyndryl in a filing with the U.S. Securities and Exchange Commission (SEC).
Kyndryl said it doesn’t expect the accounting review to result in a restatement or other impact to its previous financial statements.
However, the company said that it will delay the filing of its quarterly report with the SEC and the company expects to report material weakness in its internal controls.
The financial documents being reviewed by Kyndryl include its reporting and disclosures for fiscal 2025 and the first three quarters of fiscal 2026.
Headquartered in New York City, Kyndryl was spun off from IBM's infrastructure services business in 2021.
Kyndryl is currently the world's largest IT infrastructure services provider, and the fifth-largest consulting provider.
Before today (Feb. 9), KD stock had declined 42% since its public launch in 2021 and was trading at $23.49 U.S. per share.
