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International Business Machines Corporation (IBM) is preparing to eliminate a few thousand positions this quarter, as it refocuses its operations toward software and services, according to a report by Bloomberg News. The move comes at a time when the world’s leading tech firms have already announced cuts in excess of 100,000 jobs globally. A company spokesperson told Bloomberg, “We routinely review our workforce through this lens and at times rebalance accordingly.” Looking ahead to the fourth quarter, the spokesperson added, “In the fourth quarter, we are executing an action that will impact a low single-digit percentage of our global workforce.” With IBM’s employee count at about 2,70,000 by the end of 2024, this suggests the cuts could number in the several thousands, as per the report. Using Data To Guide The Decision According to Reuters, IBM reported a slowdown in growth in its key cloud-software business. This performance dip, despite a more than 35 per cent rise in its shares this year, seems to have pushed the company toward sharpening its focus. Even though IBM’s stock dipped nearly 2 per cent on the day of the report, the longer-term upward trend remains intact. Who May Be Affected And What It Means While some US-based employees could face reductions, IBM expects US employment levels to be “roughly the same year over year,” according to the spokesperson in the report. The cuts are global but appear calibrated so as not to drastically reshape US operations. Layoffs Across Tech Sector The IBM announcement comes amid widespread restructuring in the tech sector. Firms like Amazon, Tata Consultancy Services (TCS) and Microsoft have all announced significant job reductions as their priorities shift toward artificial intelligence and cloud-scale services. Amazon disclosed plans to cut around 14,000 corporate employees this year, with more expected next year, and TCS reduced its workforce by 19,755 to 593,314 as of Q2 FY2025-26. Additionally, Microsoft, despite cutting over 15,000 jobs in 2025, recently indicated a strategic hiring increase under its AI-driven roadmap.
