IBM To Lay Off Thousands of Employees!

Tech giant IBM is set to lay off thousands of employees across the world in the fourth quarter of 2025. The job cuts come as the company shifts its focus toward AI-driven cloud services.

Under the leadership of CEO Arvind Krishna, IBM has doubled down on its software division, with plans to make its cloud services—particularly the Red Hat division—more robust and efficient, as other businesses increasingly integrate AI technology.

In a statement, the company said it was planning to take an action that would affect a “low single-digit percentage” of its global workforce.

Last month, IBM reported slower growth in its key cloud software segment, raising alarm among investors who had bet heavily on Big Blue’s ability to capitalize on the booming demand for cloud services.

The layoff announcement also led to a drop in IBM’s share value. The company’s stock, which had risen by over 35% in mid-2025, fell nearly 2% on Tuesday following the news.

As of the end of 2024, IBM employed about 270,000 workers. Sources indicated that some U.S.-based employees might be affected by the layoffs. However, IBM clarified that overall employment in the country is expected to remain roughly the same year over year.