IBM Confirms Layoffs of Thousands in Q4 as Focus Shifts to High-Growth Software

IBM announced significant job cuts in the fourth quarter. The company will reduce a “low single-digit percentage” of its global workforce. This translates to several thousand roles. IBM employed about 270,000 workers at the end of 2024. These cuts are part of a regular workforce review. IBM is shifting its focus to high-growth areas like cloud software and artificial intelligence (AI).

Some U.S. workers will face layoffs. However, IBM expects its total U.S. employment level to remain flat year-over-year. The company intends to hire for new roles in other areas. This strategy reflects a broader trend among tech giants. Companies are restructuring to cut costs and invest heavily in AI projects.

CEO Arvind Krishna previously noted AI’s potential for replacing repetitive tasks. For example, AI agents have already taken over some Human Resources work. IBM joins other major firms, including Amazon and Microsoft, in this latest wave of tech workforce reductions.