IBM plans to cut thousands of jobs worldwide in the fourth quarter of 2025 as it shifts its focus to higher-margin artificial intelligence and software services. CEO Arvind Krishna is leading this strategy to align IBM with fast-growing areas like AI-powered cloud computing.
In a statement, IBM confirmed: “We routinely review our workforce and at times rebalance accordingly. In the fourth quarter, we are executing an action that will impact a low single-digit percentage of our global workforce.”
IBM had about 270,000 employees worldwide at the end of 2024, so a 1% cut would mean about 2,700 jobs lost. The company did not say which departments or regions will be affected, but it expects U.S. job numbers to remain unchanged, suggesting most cuts may occur in other countries or less central areas.
These layoffs are happening as IBM focuses more on software and cloud services that use artificial intelligence. In its latest earnings report, IBM said software revenue grew 10% due to higher demand for AI tools and automation platforms.
Earlier in 2025, IBM reduced its marketing and human resources teams, reportedly replacing about 200 HR jobs with AI agents. Now, the company is focusing on hiring for sales, software engineering, and AI development to support its goal of becoming a leader in enterprise AI solutions.
Part of a Larger Industry Trend
IBM’s decision is part of a larger trend in the tech industry, where many big companies are reorganizing to stay competitive as AI technology grows and economic pressures increase.
In recent months:
- Amazon announced plans to cut 14,000 corporate jobs,
- Meta (Facebook’s parent company) eliminated 600 roles in its AI division, and
- Google and Microsoft both reduced staff earlier this year as part of cost-efficiency measures.
Tech analysts say these changes show a big move toward automation and efficiency. Companies want to use their resources more effectively while investing more in new AI tools.
IBM’s Long-Term Strategy
Under Arvind Krishna’s leadership, IBM has worked to become a software-focused company, especially in hybrid cloud and AI business solutions. The restructuring should help IBM lower costs, boost profits, and invest more in its strongest areas.
Even with the layoffs, IBM is positive about its future. The company says this is a strategic workforce change, not just a job cut. “Our focus remains on investing in key growth areas and ensuring we have the right talent to drive innovation,” the company said.
Job cuts are always difficult, but IBM’s changes reflect how today’s tech world is shaped by AI, automation, and digital transformation. By focusing more on software, IBM hopes to become a stronger global leader in AI-powered business solutions.
With layoffs starting later this year, the next few quarters will be important for IBM as it tries to balance restructuring and innovation.
