IBM to Lay Off Thousands as Tech Companies Trim Workforce

ARMOHK, New York – IBM announced Tuesday that it will lay off a small percentage of its employees in the current quarter as part of an effort to streamline operations amid shifting market demands.

The company stated it would execute an action impacting a low single-digit percentage of its global workforce, which translates to a potential loss of 2,700 to 8,100 jobs. As of the end of 2024, IBM employed approximately 270,000 individuals.

An IBM spokesperson explained, “While this may impact some U.S.-based roles, we anticipate that our U.S. employment will remain flat year over year.” This statement comes as the broader tech industry continues to adjust to economic pressures, with several companies reducing headcounts in favor of increased productivity through automation and artificial intelligence.

IBM CEO Arvind Krishna noted that reliance on AI tools has been growing within the company. Earlier this year, AI agents were responsible for replacing roles in human resources, which has spurred further focus on software and cloud services.

The company previously reported a 10% increase in revenue from software. Despite strong growth in its software segment, investors have expressed concern over potential slowdowns in the cloud market.

Shares of IBM, which have seen a rise of approximately 40% year-to-date, dipped by nearly 2% following the announcement regarding layoffs. Other major tech firms have also announced job reductions recently: Amazon indicated it would cut 14,000 corporate jobs, while Meta plans to reduce roles in its AI sector.

Market analysts suggest that companies are restructuring to enhance efficiency and adapt to advances in technology. “The current environment is filled with uncertainty, and many companies may feel like this is the perfect opportunity to get rid of what some believe to be pandemic bloat,” said Kevin Thompson, CEO of 9i Capital Group.

Experts expect that more layoffs might be announced as the year draws to a close, with companies reassessing their workforce to align with evolving business priorities.