By Kavita Mistry 
In another sign of the shifting tech landscape, IBM is preparing to lay off thousands of employees as it doubles down on software-driven growth and AI services. According to Bloomberg, the job cuts will roll out this quarter as the company focuses on restructuring its workforce to align with the industry’s AI-first direction.
IBM acknowledged the move, saying it routinely evaluates its workforce and rebalances roles when needed. A spokesperson stated the layoffs would affect a “low single-digit percentage” of its global 270,000 employees.
Growth Slowdown Spurs Restructuring
The decision follows a slowdown in IBM’s cloud-software performance last quarter. While IBM’s stock rallied over 35% this year, the company recently saw shares dip amid concerns of slowing momentum.
The layoffs reflect the broader tech sector’s ongoing realignment as companies prioritize efficiency, automation, and AI-driven revenue streams. While some US workers are expected to be impacted, IBM says its US employee count will remain relatively unchanged year-over-year.
Tech Layoffs Cross 1 Lakh in 2025
The global technology industry continues to see significant job reductions. Layoffs.fyi reports that more than 112,000 employees across 218 tech companies have already been laid off in 2025. The trend mirrors the seismic workforce restructuring seen throughout 2023-2024 as AI adoption accelerated.
Industry leaders cutting jobs include:
- Amazon: ~14,000 layoffs, with more expected
- TCS: Workforce down by nearly 20,000
- Microsoft: ~15,000 layoffs in 2025, with plans for selective hiring tied to AI
From tech services giants to cloud leaders, companies are trimming operational layers while hiring selectively in innovation-centric roles.
AI Reshapes the Workforce
While layoffs dominate headlines, tech leaders emphasize strategic hiring in AI, cybersecurity, and cloud services. Microsoft CEO Satya Nadella echoed this sentiment recently, saying workforce expansion will continue — only with a sharper strategic lens in the AI-driven era.
IBM’s move underlines a hard truth: as AI becomes central to business strategy, companies are reshaping talent pools to stay competitive.