IBM is preparing to eliminate thousands of jobs across its global workforce as the company accelerates a strategic shift toward cloud computing and artificial intelligence platforms, according to reports. The reductions are expected to affect a "low single-digit percentage" of IBM's roughly 270,000 employees worldwide, marking one of the largest staffing adjustments the company has taken since realigning its business structure around software and hybrid cloud services.
The restructuring reflects the competitive pressures reshaping the technology sector, where legacy hardware and consulting operations are being eclipsed by demand for AI-enabled cloud tools. Under CEO Arvind Krishna, IBM has prioritized growth in software and cloud offerings tied to Red Hat, the open-source platform it acquired in 2019 to anchor its enterprise cloud strategy.
However, the expansion of IBM's cloud software business has recently slowed, unsettling investors who expected stronger momentum as corporate spending shifted toward AI infrastructure. The slowdown has contributed to broader concerns that traditional enterprise-focused tech companies may struggle to match the scale and speed of AI adoption seen among newer cloud-native competitors.
The company has not specified the number of workers affected or the regional breakdown of the cuts. Reports indicate that employment levels in the United States are expected to remain relatively stable year over year, suggesting that reductions may occur in non-core markets or business units tied to legacy offerings.
The layoffs occur amid a broader pattern of restructuring across the technology industry. Companies ranging from enterprise software providers to consumer-facing digital platforms have trimmed staff in recent quarters to reallocate resources toward high-margin areas such as generative AI systems, cloud optimization tools, and data engineering.
The workforce IBM is now prioritizing is increasingly centered on roles such as AI engineers, cloud architects, platform developers, and automation specialists. Meanwhile, positions linked to legacy consulting and traditional IT support face growing vulnerability as companies continue to transition operations to cloud-based environments.
The shift has also revived questions about whether artificial intelligence is displacing human labor in the tech industry. In IBM's case, the restructuring signals less a wholesale replacement of workers by AI and more a reallocation of roles toward areas expected to define the company's revenue growth over the next decade.
