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IBM is set to cut a small portion of its global workforce this quarter as part of a strategic realignment toward its fast-growing software and AI-led cloud business, according to an exclusive report by Reuters. The technology major said the move would affect a “low single-digit percentage” of its roughly 270,000 employees worldwide.“We routinely review our workforce and rebalance accordingly,” IBM said in a statement on Tuesday, indicating the layoffs form part of its fourth-quarter workforce adjustments. While some U.S. employees may be impacted, overall headcount in the country is expected to remain steady year-on-year, the company added.Under CEO Arvind Krishna, IBM has shifted its focus from legacy hardware to high-margin software and cloud services, led by its Red Hat division. The pivot aims to capture the surge in AI-related cloud adoption across enterprises. However, a slowdown in growth in its key cloud segment last month rattled investor confidence, sending IBM’s shares—up 35% this year—down nearly 2% on Tuesday.Also Read: IBM Announces Investment Worth Over ₹12.7 Lakh Crore in Massive Quantum Push in US | Republic WorldAlongside the restructuring, IBM announced plans to invest $150 billion in the United States over the next five years. The initiative will fund new facilities for quantum computing and mainframe production, aligning with Washington’s drive for greater domestic technology manufacturing. The company said more than $30 billion of the total will go into expanding U.S. production of quantum computers—machines designed to process data at speeds far beyond traditional systems.Analysts view the investment as both a technological bet and a strategic gesture toward the Trump administration, which has intensified its “Made in America” push through new tariffs and incentives.Despite headwinds from delayed government contracts and rising costs, IBM continues to position itself at the forefront of quantum innovation. Industry observers expect breakthroughs in the next decade, though practical commercial applications may take longer to emerge.
