IBM to Cut Thousands of Jobs in Workforce Realignment Focused on AI

International Business Machines (IBM) is set to implement significant job cuts this quarter as part of a major workforce realignment aimed at strengthening its position in the rapidly evolving artificial intelligence (AI) sector. The layoffs are expected to affect a low single-digit percentage of IBM’s global workforce, which stood at approximately 270,000 employees at the end of 2024.
While the company has not confirmed the exact number of roles being eliminated, the move is expected to impact several thousand employees worldwide.
In a statement, IBM said the decision aligns with its ongoing strategy to maintain the right mix of talent and skills to meet shifting client demands. The company regularly reviews its workforce composition to ensure it supports key growth priorities, particularly in AI, cloud computing, and quantum technologies.
The restructuring comes amid a broader trend among large corporations rebalancing their workforces in response to the global AI boom. For IBM, the move underscores its push to lead in next-generation computing. The company is making significant investments in quantum computing, aiming to build systems that can outperform traditional machines. It faces strong competition from Google, Microsoft, and several emerging quantum startups over the next five years.
IBM CEO Arvind Krishna recently said the company has deployed AI agents to manage certain human resources functions — a shift that has replaced the work of hundreds of employees. Savings from automation have been redirected toward expanding IBM’s programming and sales teams.
Despite the workforce changes, IBM’s consulting division continues to perform strongly, contributing to better-than-expected revenue in the third quarter of 2024. The company maintains that the restructuring will help sharpen its focus on high-growth areas while supporting innovation in AI and quantum computing.
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