IBM to cut thousands of jobs amid AI pivot
What's the story
IBM has announced plans to lay off a small percentage of its global workforce in the fourth quarter of 2025. The move will affect a low single-digit percentage of the company's employees, according to a spokesperson. While some US-based roles may be impacted, IBM expects its US employment levels to remain stable year-on-year.
Impact
Layoffs could number in thousands
As of the end of 2024, IBM had a workforce of around 270,000 employees. If the company goes through with its plan to cut a low single-digit percentage of its global workforce in Q4 2025, it could result in job losses numbering in thousands. Specifically, a 1% cut would mean approximately 2,700 jobs could be affected by this decision.
Industry trend
Job cuts part of a broader trend among tech giants
IBM's decision to cut jobs comes as part of a larger trend among tech giants. Other major companies such as Amazon, Google, and Meta have also been cutting their workforces lately. These layoffs are largely attributed to AI-driven restructuring and business reorganization efforts. Amazon recently laid off 14,000 employees as part of a global restructuring plan aimed at eliminating inefficiencies in its workforce.
Job cuts
Salesforce recently laid off over 4,000 employees
Salesforce recently laid off over 4,000 employees as part of a business restructuring effort amid the rise of AI technology. Google has also cut several hundred jobs across different divisions this year due to business restructuring. In July, Microsoft announced plans to lay off around 9,000 employees or 4% of its workforce in another round of job cuts related to its AI investments.