IBM cutting thousands of jobs in the fourth quarter

IBM announced it will cut thousands of jobs worldwide in the fourth quarter of 2025, affecting about 1% of its global workforce, which equates to roughly 2,700 positions out of 270,000 employees. The layoffs are part of a broader organizational shift as IBM intensifies its focus on high-margin software and artificial intelligence services, moving away from traditional hardware and service roles.

Key Points

• The company stated that U.S. employee levels are expected to remain stable year over year, suggesting most job cuts will happen internationally or outside core business units.
• The restructuring is a response to increased investments in AI and cloud services, areas where IBM has recently experienced robust growth, including a 10% increase in software revenue last quarter.
• CEO Arvind Krishna has previously highlighted using AI to automate and replace some roles, particularly in areas like human resources, as IBM seeks to improve efficiency.
• IBM joins other major tech companies—such as Amazon, Meta, Google, and Microsoft—which have conducted large-scale layoffs as they pivot to AI-driven strategies.

The move is aimed at aligning IBM's workforce with its ongoing shift toward AI and software, which are now seen as core growth drivers for the company.