IBM to Lay Off Thousands in ‘Routine’ Workforce Review

IBM is reportedly planning to cut thousands of jobs during the ongoing quarter as part of a “routine review” of its workforce, the company said on Tuesday. The US tech giant had about 270,000 employees at the end of 2024.

In a statement shared with US media outlets, IBM said it is “executing an action that will impact a low single-digit percentage of our global workforce” in the fourth quarter.

“We routinely review our workforce … and at times rebalance accordingly,” the company noted, according to Reuters.

The news agency quoted IBM as saying that some US workers may be affected by the job reductions, but overall employment in the country is expected to remain roughly the same year over year.

The decision comes as IBM focuses on expanding its software division to tap into rising demand for cloud services, with businesses increasingly integrating artificial intelligence.

In October, IBM reported a slowdown in growth within its key cloud software segment, unsettling investors who had bet on the company’s ability to capitalise further on booming cloud demand. Despite those concerns, IBM’s third-quarter earnings surpassed expectations, driven by a 10% rise in software revenue, in line with market forecasts.

Since taking over in 2020, CEO Arvind Krishna has worked to broaden IBM’s revenue base. Earlier this year, in March 2024, the company laid off some marketing and communications staff as part of a wider restructuring.

In May, Krishna told The Wall Street Journal that AI agents had replaced around 200 roles in human resources, allowing IBM to shift its focus towards hiring more sales and software development talent.

The move reflects a broader trend across the tech industry, where companies are increasingly relying on artificial intelligence to improve efficiency. In October, Amazon announced plans to cut 14,000 corporate roles, while Meta said its AI division would eliminate about 600 positions.