IBM Announces Thousands of Job Cuts Amid Software Focus
IBM is set to cut thousands of jobs as it shifts focus toward software and services growth. The layoffs will affect a “low single-digit percentage” of its global workforce of approximately 270,000 employees.
Key Takeaways
- IBM cutting thousands of jobs in Q4 2024
- Affects “low single-digit percentage” of 270,000 workforce
- Part of strategic shift to software and services
- US employment expected to remain stable year-over-year
“We routinely review our workforce through this lens and at times rebalance accordingly,” the report said, quoting a company spokesperson.“In the fourth quarter we are executing an action that will impact a low single-digit percentage of our global workforce.”
Cloud Growth Slowdown
IBM recently reported a slowdown in its key cloud software segment growth. Despite shares rising over 35% this year, they fell nearly 2% on Tuesday amid the layoff news.
Who Gets Affected?
While some US workers face job reductions, overall employment in the country is expected to remain roughly unchanged year-over-year, according to the company spokesperson.
Broader Tech Industry Layoffs
The IBM cuts come amid widespread tech industry restructuring. According to Layoffs.fyi, over 112,732 tech workers have been laid off across 218 companies in 2025 alone.
Amazon Workforce Reduction
Last week, Amazon announced plans to cut approximately 14,000 corporate roles globally, with additional reductions expected next year. Affected employees will get 90 days to find internal positions, with recruiting teams prioritizing these candidates.
TCS Workforce Decline
Tata Consultancy Services, India’s largest IT firm, saw its workforce decline by 19,755 employees to 593,314 in Q2 FY2025-26.
Microsoft’s Strategic Shift
Microsoft has laid off over 15,000 employees in 2025. However, CEO Satya Nadella stated the company plans workforce expansion with a “more strategic and leveraged approach” following the AI revolution.
