IBM has announced plans to cut its workforce as the cloud computing giant targets a small reduction in global headcount.
A spokesperson for the company told ITPro the pending layoffs aim to reshuffle current workforce levels in the wake of a recent review.
"IBM’s workforce strategy is driven by having the right people with the right skills to do the work our clients need," the spokesperson said.
"We routinely review our workforce through this lens 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."
In a separate statement, a spokesperson told CNBC that the layoffs will affect a limited number of employees worldwide.
“While this may impact some US-based roles, we anticipate that our US employment will remain flat year over year.”
Exact details on the number of works affected by the cuts are yet to be determined. However, the company’s 2024 annual report shows its global workforce stood at around 270,000 employees.
With this in mind, cuts between one and five percent would equate to anywhere from 2,700 to over 13,500 on the higher end of the scale.
IBM recorded a strong third quarter in 2025, with revenue increasing 9% compared to the same period last year.
Notably, CEO Arvind Krishna hailed the company’s AI growth as a significant milestone. Revenue in this business segment has now surpassed $9.5 billion compared to $7.5bn in the prior quarter.
“Clients globally continue to leverage our technology and domain expertise to drive productivity in their operations and deliver real business value with AI,” CEO Krishna said in a statement last month.
IBM layoffs hot on the heels of industry reshuffle
The layoffs, which are expected to impact staff in the current financial quarter, mark the latest in a series of workforce cuts at big tech companies in recent years.
Earlier this month, Amazon revealed plans to cut 14,000 employees globally in a bid to become a leaner, more agile company. A key factor behind these cuts lies in a period of ‘overhiring’ during the pandemic.
A host of tech giants have attributed layoffs over the last two years to this trend, with many now seeking to balance budgets and offload staff who are surplus to requirements.
While IBM hasn’t confirmed whether this is the motivation behind these layoffs, official figures show the company’s workforce has decreased steadily over the last five years.
Its 2020 annual report showed the cloud giant had more than 345,000 staff worldwide, with this dropping to just over 282.000 by the end of 2021.
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