IBM plans to cut thousands of jobs in late 2025 as it shifts focus toward software and AI. The restructuring includes moving roles to India, expanding GenAI investments, and maintaining U.S. employment levels amid automation-driven efficiency gains.
As part of a larger makeover meant to bolster its software and artificial intelligence business, IBM is getting ready to shed thousands of jobs in the fourth quarter of 2025. The company said that a low single-digit percentage of its worldwide workforce, which at the end of 2024 was around 270,000 employees, would be affected by the cuts.
As IBM increases its efforts to bring its software and cloud offerings to the front of operations, thereby lowering its dependence on its slower-growing consulting division, the layoffs arrive. Although software continued to expand, margin pressure rose as consulting sales dropped 2% in late 2024, even as software soared 8% to make up practically half of total income.
Already slashing $3.5 billion in costs during the previous year, International Business Machines Corporation
Simultaneously, IBM keeps making significant investments in generative artificial intelligence and digital transformation. IBM revealed that its GenAI projects last quarter produced $1.5 billion in new bookings, with almost 80% of that growth coming from its consulting division. CEO Arvind Krishna
ALSO READ: Starbucks Announces $1 Billion Restructuring, Closing Stores and Laying Off 900 Employees
IBM predicts that general U.S. employment will stay constant as automation and artificial intelligence adoption offset job losses, even if some U.S. jobs might be impacted. Already handling jobs once carried out by hundreds of HR personnel, artificial intelligence solutions
