by Armonk, New York – IBM confirmed on Tuesday that it will be laying off thousands of employees worldwide before the end of 2025. The company described the cuts as a “low single-digit percentage” of its global workforce, which totals approximately 270,000 employees.
A 1 percent reduction would result in the elimination of roughly 2,700 jobs, though exact numbers have not yet been disclosed. While some U.S.-based roles may be affected, IBM expects U.S. employment to remain flat year over year, according to a company spokesperson.
Industry Context: Tech Layoffs on the Rise
This announcement follows a broader trend in the tech industry, where many companies are reducing staff to improve efficiency and shift focus toward artificial intelligence (AI) tools. For example:
- Meta plans to cut approximately 600 employees from its AI team.
- Amazon announced layoffs for 14,000 corporate employees in October.
Experts suggest that these layoffs are part of a larger effort to boost profits, streamline operations, and prepare for new financial quarters. Kevin Thompson, CEO of 9i Capital Group, told Newsweek, “The current environment is filled with uncertainty, and many companies may feel like this is the perfect opportunity to get rid of what some believe to be pandemic bloat.”
IBM’s Financial Performance
Despite the layoffs, IBM recently reported a 10 percent jump in software revenue, showing that certain segments of the company continue to perform well. However, uncertainty in the broader market has prompted the company to reevaluate its workforce needs as it plans for 2026.
Business analysts note that the fourth quarter is traditionally when companies review employee performance, tighten operations, and adjust forecasts for the year ahead. As a result, more layoffs across the tech sector may be expected as the year closes.
What Employees Should Know
Employees impacted by the layoffs are encouraged to:
- Monitor official company communications for updates on severance and support.
- Review unemployment benefits in their respective states.
- Consider networking and job-search strategies, especially in tech sectors shifting toward AI and automation.
IBM emphasized that the decision to reduce staff is part of a strategic realignment, and the company will provide resources and support to affected employees as needed.
Broader Implications for the Tech Industry
The tech industry continues to undergo rapid transformation as AI integration, automation, and productivity tools reshape workforce needs. Companies are seeking to optimize operations with fewer employees while maintaining growth, creating both challenges and opportunities for tech workers.
Are you impacted by IBM’s layoffs or working in a tech company facing restructuring? Share your experience and advice for employees navigating these changes in the comments below.
