IBM announced it plans to cut roles in the fourth quarter of 2025, affecting a “low single-digit percentage” of its global workforce. The move comes as the company shifts its focus toward its higher-margin software and cloud business, especially through its “Red Hat” division.
The company currently employs around 270,000 people globally (as of end-2024), meaning that even a “low single-digit” cut could translate to thousands of jobs. IBM stated that while some U.S-based roles may be impacted, it expects its U.S. employment to remain roughly flat year over year.
IBM’s strategy reflects a broader trend among tech firms redirecting investment from legacy services toward AI-driven cloud software. The reduction is described as part of routine workforce “rebalancing” aimed at aligning staffing with the skills and roles needed for its new growth areas.
Although the cuts raise concerns about job displacement, IBM’s leadership frames the changes as part of its evolution rather than a broad retrenchment. The emphasis is on scaling its AI and software offerings, which the company views as the future of its business model.
