International Business Machines (IBM) is planning significant job cuts this quarter as part of a major workforce realignment to strengthen its position in the rapidly evolving artificial intelligence (AI) landscape. The layoffs will affect a low single-digit percentage of its global workforce, which stood at around 270,000 employees at the end of 2024.
While the company has not disclosed the exact number of roles being eliminated, the cuts are expected to impact several thousand employees worldwide.
IBM said the move aligns with its broader strategy of maintaining the right mix of talent and skills to support changing client needs. The company routinely reviews its workforce composition to ensure alignment with its growth priorities, particularly in AI, cloud computing, and quantum technologies.
The decision follows a growing trend among major corporations rebalancing their workforces amid the AI boom.
For IBM, the restructuring comes as it doubles down on its ambitions to lead in next-generation computing. The Armonk, New York–based company is investing heavily in developing quantum computers capable of outperforming traditional machines. It is competing with Google, Microsoft, and several startups to build scalable quantum systems over the next five years.
CEO Arvind Krishna recently revealed that IBM has already deployed AI agents to handle some HR functions, replacing the work of hundreds of employees. The company has redirected those savings to expand its programming and sales teams. Despite workforce adjustments, IBM’s consulting business remains a strong growth driver, helping the company post higher-than-expected revenue in the third quarter of 2024.
