International Business Machines Corp. has recently announced the layoff of thousands of workers, moving its focus to software and services. According to a report by Bloomberg, the company will begin job cuts this quarter, as it rebalances operations for future growth.
An IBM spokesperson told Bloomberg, “We routinely review our workforce through this lens and at times rebalance accordingly. In the fourth quarter, we are executing an action that will impact a low single-digit percentage of our global workforce.”
The decision comes amid a slowdown in IBM’s key cloud software segment, which showed weaker growth in the last quarter. Even as IBM’s stock has gained up to 35% this year, it fell by almost 2% on Tuesday after news of the layoffs was made public.
Analysts say the move reflects IBM’s efforts to reposition itself as a software-first company, investing in areas such as hybrid cloud solutions, automation, and AI-driven enterprise services.
While the restructuring may affect some US employees, the overall level of employment in the country should remain about the same as year over year, the company said. IBM employed about 270,000 workers globally at the end of 2024, so the potential layoffs amount to a relatively modest but symbolic adjustment.
Also Read: Amazon Layoffs Hit Over 30,000 Corporate Employees, According to Reports
IBM’s move adds to the growing list of tech industry layoffs around the world, caused by the change in priorities toward artificial intelligence and automation. As reported by Layoffs.fyi, layoffs in 2025 have affected over 112,000 employees in the tech industry, with 218 companies involved.
Amazon was the first to make a large cut of 14,000 employees, followed by Microsoft, which dismissed more than 15,000 people this year alone, despite plans to grow the workforce slowly. TCS in India revealed a drop of almost 20,000 in its staff during the second quarter of FY26.
With AI driving innovation in the business model, firms like IBM are changing their human resources strategies, signaling continuous technological transformation in the sector.