IBM is planning to lay off thousands of employees globally in the fourth quarter of 2025 as part of a strategic "workforce rebalancing" to sharpen its focus on high-growth areas like artificial intelligence (AI), software, and cloud services.
Key Details of the Job Cuts
Scale: An IBM spokesperson confirmed the cuts will impact a "low single-digit percentage" of its global workforce. Given IBM's global headcount of approximately 270,000 employees at the end of 2024, a 1% cut equates to roughly 2,700 roles, meaning the total number of affected jobs will be in the thousands.
Reasoning: The company stated, "We routinely review our workforce through this lens and at times rebalance accordingly." This action is part of CEO Arvind Krishna's ongoing transformation effort since 2020 to pivot away from legacy businesses and accelerate growth in software and hybrid cloud.
AI Integration: The move is also linked to the wider adoption of AI. CEO Krishna previously noted that AI tools had already automated tasks equivalent to the work of about 200 human resources employees, allowing the company to redirect its hiring toward more software engineers and sales talent.
Financial Context: The announcement follows a stronger-than-expected quarterly earnings report, which was driven by a 10% increase in software revenue.
Geographic Impact: While some U.S.-based roles may be affected, IBM anticipates that its overall U.S. employment will remain broadly flat year-over-year as it continues to hire in strategic growth segments.
This move mirrors a broader trend across the global tech industry, with other major companies like Amazon and Meta also announcing significant workforce reductions in 2025 to streamline operations and invest heavily in AI.