The IBM layoffs are the latest blow in a year dominated by massive tech job cuts. On Tuesday, the company confirmed that it would lay off thousands of employees before the end of the year. The cuts will affect a “low single-digit percentage” of IBM’s global workforce of nearly 2,70,000 employees. Even a one per cent reduction means at least 2,700 job losses.
In a statement to CNBC, an IBM spokesperson said, “In the fourth quarter, we are executing an action that will impact a low single-digit percentage of our global workforce.” The spokesperson added that while some US-based roles will be affected, overall US employment is expected to remain stable.
AI adoption drives workforce reduction
The IBM layoffs come amid the company’s accelerated use of artificial intelligence to boost productivity and reduce costs. Earlier this year, CEO Arvind Krishna revealed that AI had already automated tasks previously handled by about 200 employees in the HR department. The resulting efficiency allowed IBM to expand hiring in sales and software roles instead.
As more tech firms embrace automation, IBM’s move mirrors a wider industry trend. Several corporations are restructuring teams, replacing repetitive human tasks with AI systems. Krishna has emphasised that AI will not replace programmers but will instead “increase their productivity.”
Industry-wide cuts intensify
The IBM layoffs follow similar decisions by major tech giants. Amazon recently announced plans to cut around 14,000 corporate roles as part of its long-term cost reduction strategy. Reports suggest the total may even reach 30,000, the largest in Amazon’s history.
Across the sector, companies like Intel and UPS have also reduced staff in recent months. These layoffs have sent shockwaves through corporate America and affected thousands of employees in countries like India, where many global tech companies maintain major offices.
IBM stays profitable amid restructuring
Despite the layoffs, IBM remains financially strong. The company posted better-than-expected results in October, with software revenue rising 10%. Since taking over in 2020, Arvind Krishna has diversified IBM’s portfolio and increased revenue streams through cloud computing and AI integration.
The IBM layoffs signal a clear shift in focus, one where technology and automation take center stage. As the global tech layoff spree continues, the industry’s message grows sharper: AI is not just the future; it’s now shaping who stays and who goes.
