International Business Machines Corporation (IBM) has announced plans to lay off thousands of employees globally in the fourth quarter of 2025.
The decision is part of the company’s ongoing strategy to focus on high-margin areas such as artificial intelligence, software, and cloud services, according to statements from company executives and official reports.
Scope and Scale of IBM Layoffs
IBM confirmed that the job cuts will affect a low single-digit percentage of its global workforce.
With a total headcount of approximately 270,000 employees as of the end of 2024, this reduction could impact between 2,700 and 8,000 roles globally.
While the company did not disclose the exact number of positions to be eliminated, it clarified that the layoffs will be global in nature, with some roles in the United States also affected.
However, IBM stated that it expects its U.S. headcount to remain flat year-over-year, suggesting that reductions in one area may be offset by hiring in others.
Strategic Realignment Under CEO Arvind Krishna
The layoffs are part of a broader strategic realignment under CEO Arvind Krishna, who has been steering the company toward becoming a leader in AI and hybrid cloud services.
This transition has already seen IBM divest its managed infrastructure services business, now known as Kyndryl, and increase investments in AI-driven consulting and software development.
A company spokesperson noted, “We routinely review our workforce through this lens and at times rebalance accordingly.”
The spokesperson added that the current action is consistent with IBM’s long-term strategy to focus on areas with higher growth potential.
Previous Workforce Adjustments
This is not the first round of job cuts under Krishna’s leadership.
Earlier in 2025, IBM implemented reductions in its marketing and human resources departments, aligning with its shift toward more technical and client-facing roles.
The company has since been actively hiring in sales, software engineering, and AI consulting, indicating a reallocation of resources rather than a net reduction in workforce.
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