key takeaways
- IBM said earlier this week that it would make layoffs in the current quarter.
- The cuts will affect a “low single-digit percentage” of IBM’s 270,000-person global workforce.
- IBM is making the cuts as it focuses on high-growth areas like AI consulting and software.
IBM revealed Tuesday that it will eliminate a small percentage of its workforce in the current fourth quarter. The company reported that the action would affect a “low single-digit percentage” of IBM’s global workforce. bloomberg,
according to registerIBM began notifying several thousand global employees this week about the layoffs, giving employees 30 days to secure another position within the company or face termination with a few months of severance pay. The Register reports that most of those notified are unlikely to get new positions and will have to exit IBM.
According to the latest information, IBM employs approximately 270,000 people at the end of 2024 annual reportSo even a 1% cut will affect 2,700 employees. IBM spokesperson told cnbc The layoffs “may impact some US-based roles” but the company expects its US headcount overall to remain “stable year over year”. So although some US roles may be affected, IBM’s overall US employment figures are expected to remain stable.
Connected: The world’s largest consumer goods company is laying off thousands of employees: ‘The world is changing’
IBM is making the cuts as it shifts its focus to higher-growth businesses in AI consulting and software. according to the new York TimesJim Kavanaugh, IBM’s chief financial officer, said in a conference call with analysts last month that more corporations were beginning to adopt AI, evidenced by the fact that about 80% of IBM’s AI consulting and software clients over the past six months were new to the company.
In the third quarter, IBM’s bookings for AI consulting and software rose to $9.5 billion, up $2 billion from the second quarter. wall street journal,
“Our AI business is now worth more than $9.5 billion,” said IBM CEO Arvind Krishna. an earnings statementEmphasizing the “strength” of IBM’s AI business.
Other tech companies have also made layoffs recently. Amazon announced last month that it was eliminating 14,000 corporate roles biggest job cuts In the corporate history of the company. Meanwhile, software giant Oracle hundreds were laid off layoffs in Washington state this week as part of a restructuring plan.
Connected: Amazon CEO reveals the real reason behind the company’s 14,000 job cuts — and it’s not because of AI or cost-cutting
Last month, I.B.M. informed Revenue of $16.3 billion in the third quarter of 2025, which represents an increase of 9% compared to the same period last year. The company also made a profit of $1.7 billion in the quarter, which is more than a Net loss of $330 million Last year.
At the time of writing, IBM has 366 open job postings In the US, roles range from senior software developer to business development executive.
key takeaways
- IBM said earlier this week that it would make layoffs in the current quarter.
- The cuts will affect a “low single-digit percentage” of IBM’s 270,000-person global workforce.
- IBM is making the cuts as it focuses on high-growth areas like AI consulting and software.
IBM revealed Tuesday that it will eliminate a small percentage of its workforce in the current fourth quarter. The company reported that the action would affect a “low single-digit percentage” of IBM’s global workforce. bloomberg,
according to registerIBM began notifying several thousand global employees this week about the layoffs, giving employees 30 days to secure another position within the company or face termination with a few months of severance pay. The Register reports that most of those notified are unlikely to get new positions and will have to exit IBM.
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