IBM has confirmed that thousands of employees will be laid off from its global workforce as part of a larger restructuring effort. According to a CNBC report, the company will reduce a “low single-digit percentage” of its total staff during the fourth quarter of 2025. With roughly 270,000 employees worldwide at the end of 2024, even a 1 per cent reduction would affect around 2,700 workers.
An IBM spokesperson told CNBC, “In the fourth quarter, we are executing an action that will impact a low single-digit percentage of our global workforce. While this may impact some US-based roles, we anticipate that our US employment will remain flat year over year.”
The decision aligns with IBM’s continued pivot toward high-margin businesses such as software, hybrid cloud, and artificial intelligence solutions.
CEO Emphasises Hiring Of Fresh Graduates
Despite the job cuts, IBM CEO Arvind Krishna presented a more optimistic perspective. In an interview with CNN, he said that the company remains committed to bringing in new talent rather than freezing recruitment.
“People are talking about either layoffs or freezing hiring, but I actually want to say that we are the opposite,” Krishna said. “I expect we are probably going to hire more people out of college over the next 12 months than we have in the past few years, so you’re going to see that.”
Focus on Skills For The AI Era
Krishna also recognised that automation would continue to reshape the workforce, but emphasised that the net outcome for IBM would still be positive. “On the net mix, it’s a plus for us,” he said, referring to the balance between job reductions and new opportunities created by technology.
He advised young professionals to concentrate on developing the right capabilities to thrive in the evolving tech landscape. “Skills of people are really important,” Krishna noted, adding, “We need skills in AI. We need skills in quantum. We need skills that our clients feel really good about technology being deployed in their environment.”
Through this dual approach, strategic automation combined with fresh talent acquisition, IBM appears to be reshaping its workforce to meet the demands of the next phase of digital transformation.