IBM announced plans to cut roles in the fourth quarter, a move expected to affect thousands of employees globally as the company continues to focus on its high-margin software business and AI-driven cloud strategy.
“We routinely review our workforce and at times rebalance accordingly,” the company said in a statement. “In the fourth quarter we are executing an action that will impact a low single-digit percentage of our global workforce.”
The restructuring aligns with IBM’s ongoing transformation under CEO Arvind Krishna, who has been steering the company towards software and cloud-based services through its Red Hat division. The shift aims to capture the growing enterprise demand for AI and hybrid cloud solutions.
IBM, which employed about 270,000 people at the end of 2024, did not specify which regions would be most affected. However, it noted that employment levels in the United States are expected to remain largely unchanged year over year.
The move comes after IBM reported a slowdown in growth within its key cloud software business last month, raising concerns among investors about its ability to keep pace with competitors in the rapidly expanding AI and cloud markets.
The company’s shares, which have gained more than 35% this year, fell nearly 2% on Tuesday following the announcement.
IBM’s latest restructuring reflects its strategic priority to strengthen profitability and enhance its position in AI-powered cloud services, even as it trims costs and streamlines operations across its global workforce.
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