Team siliconindia

• IBM to lay off a small percentage of its global workforce
• Job cuts tied to AI and software-focused restructuring
• U.S. headcount expected to stay flat despite layoffs

IBM plans to trim its global workforce in the fourth quarter of 2025 as it shifts more aggressively toward artificial intelligence and high-margin software services. The layoffs, described as a 'low single-digit percentage' of its total staff, could affect thousands of employees worldwide.

With about 270,000 workers globally at the end of 2024, even a 1% cut would impact around 2,700 employees. However, IBM says its U.S. workforce will remain relatively unchanged year over year, indicating that most job cuts may occur in other regions or non-core functions.

The move is part of CEO Arvind Krishna’s broader restructuring strategy, which prioritizes cloud solutions, AI, and software development, sectors that have shown promising growth. IBM's latest earnings showed a 10% increase in software revenue, boosting investor confidence in its new direction.

Earlier reports revealed that IBM had already cut roles in areas such as marketing and HR, replacing some positions with AI systems. The company has shifted hiring focus to sales, product development, and other growth-aligned roles to support its evolving strategy.

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This trend mirrors industry-wide changes as tech giants streamline operations and double down on AI. Amazon recently announced plans to slash 14,000 corporate roles, while Meta cut 600 jobs in its AI arm.

IBM emphasizes that periodic workforce adjustments are essential to stay aligned with future priorities, reinforcing its commitment to next-gen technology investment.