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IBM to lay off thousands as it sharpens focus on AI
IBM had a global headcount of approximately 2,70,000 employees at the end of 2024, meaning even a one percent reduction could impact around 2,700 workers.
IBM had a global headcount of approximately 2,70,000 employees at the end of 2024, meaning even a one percent reduction could impact around 2,700 workers.
IBM has confirmed plans to cut a small percentage of its global workforce in the fourth quarter of 2025, a move expected to affect thousands of employees worldwide as the company continues to realign its operations towards high-margin software and artificial intelligence services, according to a report by CNBC.
An IBM spokesperson explained that the company is executing an action that will impact a low single-digit percentage of its global staff, noting that while some U.S.-based roles may be affected, overall U.S. employment levels are expected to remain flat year-on-year. IBM had a global headcount of approximately 2,70,000 employees at the end of 2024, meaning even a one percent reduction could impact around 2,700 workers.
The decision forms part of IBM’s broader organisational restructuring under CEO Arvind Krishna, who has been steering the company towards AI-driven cloud and software offerings — both of which have shown strong growth. In its most recent earnings report, IBM recorded better-than-expected results, supported by a 10% rise in software revenue.
Earlier this year, The Wall Street Journal reported that IBM had already eliminated roles in marketing and communications, while also replacing about 200 human resources positions with AI agents. The company has since redirected hiring efforts towards sales and software development roles to support its evolving business priorities. The move reflects a broader trend across the technology industry, where firms are restructuring their workforces to streamline operations and invest more heavily in AI. In recent months, Amazon announced plans to cut 14,000 corporate jobs, while Meta confirmed 600 layoffs in its AI division.
IBM maintained that its U.S. workforce will remain largely stable over the coming year, suggesting that the job cuts are likely to be concentrated in international markets or non-core business units. The company emphasised that it regularly reviews its workforce to ensure alignment with strategic priorities and emerging growth areas, adding that the current restructuring is part of a long-term plan to strengthen its focus on next-generation technologies.
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