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IBM to Cut Thousands of Jobs This Quarter as It Refocuses on Software

IBM expects U.S. headcount to hold steady alongside a $150 billion manufacturing and R&D commitment.

Overview

  • An IBM spokesperson said the Q4 action affects a low single-digit percentage of the global workforce.
  • Some U.S. employees could be included in the reductions, though overall U.S. employment is expected to remain roughly flat year over year.
  • CEO Arvind Krishna has pushed to make software the company’s largest unit, building on acquisitions such as Red Hat and HashiCorp.
  • IBM shares have climbed this year on investor enthusiasm for its software business, while consulting has faced weaker client demand.
  • The company had about 270,000 employees at the end of 2024, and its U.S. investment includes more than $30 billion for research and development to sustain mainframe and quantum production domestically.