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IBM to Cut About 3,000 Jobs as It Refocuses on Software and AI

The company frames the move as a routine rebalancing to align with its software-led strategy.

Overview

  • IBM said the action this quarter will affect a low single-digit percentage of global staff, with reports putting the total near 3,000 roles, or about 1%.
  • Some U.S. employees could be included, though the company expects U.S. headcount to remain roughly unchanged from last year and has not outlined a rehiring plan for this round.
  • The announcement follows quarterly results showing 9% revenue growth to $16.35 billion and an AI business exceeding $9.5 billion.
  • CEO Arvind Krishna is prioritizing software and higher-growth services, buoyed by acquisitions such as Red Hat and HashiCorp.
  • Separately, IBM this year detailed a $150 billion U.S. manufacturing push with more than $30 billion for R&D to keep advanced hardware production domestic.