IBM , one of the world’s largest technology firms, has confirmed a new round of layoffs, citing ongoing efforts to realign resources towards artificial intelligence (AI) and cloud computing. The company revealed on November 4 that it will reduce its global workforce by a “low single-digit percentage,” which, based on IBM’s headcount of roughly 270,000 employees, could affect at least 2,700 jobs.
Why IBM is Cutting Jobs
The layoffs are part of IBM ‘s ongoing transformation strategy, which prioritizes investment in high-growth segments such as AI, hybrid cloud solutions, and advanced software offerings. While legacy IT infrastructure and support functions face cuts, roles in sales, software, and consulting (areas critical to IBM’s future direction) are expected to see investment and potential hiring.
According to CEO Arvind Krishna, these targeted workforce reductions give IBM “flexibility in our investments,” allowing the company to double down on next-generation tech rather than legacy operations. Krishna has also publicly noted that while AI will automate some roles, particularly repetitive administrative work, technology is unlikely to replace skilled programming staff in the short term.
Global Reach & Employee Impact
The restructuring will affect employees worldwide, with reports suggesting that both US and overseas offices, including those in India and Europe, could experience redundancies. The company indicated that US employment numbers should remain steady year-over-year, despite the layoffs.
Employees impacted by the cuts are reportedly being offered severance packages that include pay based on tenure, benefits continuation, and job placement guidance. IBM is also offering some the chance to reskill for emerging roles within the business.
Industry Context: Tech Sector Layoffs on the Rise
IBM ‘s announcement comes amid broader workforce reductions across Big Tech. Amazon has recently announced historic layoffs impacting approximately 14,000 roles, with some estimates projecting even further job reductions. Similar moves have been announced by other major tech firms as companies streamline operations and invest heavily in AI-driven initiatives in response to ongoing economic uncertainty.
Employee & Analyst Reactions
The news has fueled concern among IBM employees, who have taken to company forums and social media to express anxiety and seek clarity on the timeline and scope of the layoffs. Advocacy groups have called for greater transparency as the company implements workforce changes and reallocates capital for future innovation.
Industry analysts recognize the move as a calculated step to keep IBM competitive in the AI and cloud computing spaces. However, questions remain about the long-term impact on morale, internal talent, and the company’s ability to maintain growth while undergoing rapid transformation.
