As we draw closer to the end of the year, IBM joins the still-expanding list of businesses betting on layoffs in 2025. In a recent update, the company confirmed that it was planning to lay off a small percentage of its workforce in the current quarter, sealing Q4 with some significant changes to its business operations. Unfortunately, for a company as big as IBM, a small percentage still adds up to plans to lay off thousands of workers. The company employed over 270,000 workers at the end of 2024, and a simple 1% reduction in headcount could add up to 2,700 jobs. As IBM’s workforce reduction plans unfold, the barrage of AI-related cuts continues to rain down on employees.
The emerging reports of IBM layoffs for the remainder of 2025 indicate the company’s desire to review and rebalance the workforce. (Image: Pexels)
IBM Layoffs in 2025 Are Part of the Company’s Desire to “Rebalance”
The details available on IBM’s job elimination plans are relatively low, with the company stating, “We routinely review our workforce…and at times rebalance accordingly.” IBM further added that “In the fourth quarter, we are executing an action that will impact a low single-digit percentage of our global workforce.” Analysts estimate that even if IBM’s upcoming layoffs in 2025 only target a 1-3% reduction in headcount, between 2,700-8,100 workers could be affected by the changes.
While reports suggest the company’s stocks are up 40% year-to-date, the company’s decision to reduce its numbers keeps with the trends we’ve seen this year. Specifically, most layoffs haven’t focused on clearing out underperforming workers, but instead appear to clear out room for future investments, particularly in AI and cloud technology.
Where Will the IBM Workforce Reduction Plans Take Shape?
What does stand out with IBM’s Q4 job cuts is that the business claims it isn’t specifically looking at cuts within the US, hinting at a broader, global unfolding of the layoffs. “While this may impact some U.S.-based roles, we anticipate that our U.S. employment will remain flat year over year,” an IBM spokesperson told CNBC. This certainly seems like good news for US workers, who have been repeatedly hit with job cuts over the course of the year, forced to step into a job market that’s similarly focused on a “no hire” strategy.
Unfortunately, posts on platforms like TheLayoff indicate that a sizable number of US-based workers have already been hit by the job cuts. The reports reiterate that workers in the region may not be fully immune. Discussions on Reddit have also showcased similar frustrations, with many speaking out against businesses offshoring jobs and taking away opportunities locally.
Is IBM’s Workforce Cut a Result of AI Prioritization?
IBM’s Q4 job cuts are targeted at rebalancing its global workforce, but the company did not hint at any correlation with AI-based investments. Unlike competitors, the tech giant did not elaborate on what this rebalancing would mean for the organization. Apart from AI-motivated cuts, many tech businesses have expressed their intent to flatten the hierarchical nature of the organization and eliminate unnecessary bureaucracy or overlap, particularly among managerial operations.
On the other hand, market speculations suggest a link between the proposed cuts and future investments in artificial intelligence. IBM’s current plans to cut thousands of jobs aren’t the first sign of layoffs at the organization this year. The company previously laid off a significant number of Human Resources workers to replace them with AI, relying on its own AskHR agent to automate 94% of routine HR tasks. This shift sent ripples throughout the HR industry, raising questions about the future of key jobs that are currently essential to every business in any given industry.
Not only is IBM a key adopter of AI, but it has an impressive AI business wing of its own. This was made all the more apparent through the company’s “Let’s create smarter business” campaign in September, where IBM showcased the “potential for expertly applied AI, hybrid cloud, and quantum to change how work gets done.” Whether the goal is to achieve greater AI adoption within its workforce or increase investments in its own AI-based offerings, the IBM layoffs in 2025 can be linked back to AI.
IBM’s Addition to Tech Industry Woes Leaves Workers Uncertain About the Future of Work
News of IBM’s job elimination plan joins the long list of businesses wrapping up 2025 with cuts instead of a neat bow of rewards and remuneration. Amazon’s recent layoff announcement has rocked the employment boat on the most significant scale in recent weeks, but the roiling waves cannot be exclusively blamed on the e-commerce behemoth. Microsoft, Meta, Google, and a score of other businesses have downsized operations throughout the year.
While some believe that all cuts can be linked back to AI and the need for “reorganization” is merely a ruse, others believe that all the layoffs stem from a desire to cut labor costs, and AI advancements make for an easy excuse. The reasons behind the layoffs may vary, but the impact on workers affected by the cuts continues to remain unchanged.
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