IBM Plans Major Workforce Reduction in Q4 2025
IBM is preparing for significant layoffs affecting thousands of employees in the fourth quarter of 2025 as the company shifts focus toward high-margin cloud software and AI services. The job cuts will impact a “low single-digit percentage” of IBM’s global workforce, potentially affecting thousands of roles.
Key Details of IBM’s Restructuring
According to a Reuters report, IBM confirmed it will “execute an action that will impact a low single-digit percentage of our global workforce” during Q4 2025. The company stated it regularly reviews and rebalances its workforce as needed.
Under CEO Arvind Krishna’s leadership, IBM has doubled down on software investments and plans to expand cloud services through its Red Hat division. The restructuring comes as IBM aims to capitalize on growing AI-linked cloud demand while eliminating roles deemed unnecessary.
Financial Context and US Impact
The layoffs follow slower growth in IBM’s cloud software division last month, which concerned investors who had been heavily investing in the company’s expanding cloud services. IBM shares fell by 2% after rising approximately 35% earlier in 2025.
Some US employees are expected to be affected by the workforce reduction. As of December 2024, IBM employed approximately 270,000 people globally, though the exact number of impacted workers remains unclear.
IBM joins the ongoing tech industry layoff trend that has affected over 112,000 employees this year, marking another significant workforce adjustment in the technology sector.
