IBM Restructures, Cuts Thousands of Jobs to Focus on Software and AI Growth
Автор: Roaming Ramble
Загружено: 2025-11-05
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IBM is undergoing significant restructuring efforts, resulting in thousands of job losses in the fourth quarter. This strategic move aims to sharpen the company's focus on high-growth areas like software and artificial intelligence. According to reports, the layoffs will impact a low single-digit percentage of IBM's global workforce, which stands at approximately 270,000 employees.
Reasons Behind the Cuts:
Shift to Software and AI: IBM is prioritizing its software segment, including hybrid cloud and AI consulting, to drive growth and profitability.
Restructuring Efforts: The company is streamlining operations to improve efficiency and reduce internal complexity.
Cloud Services Focus: IBM is focusing on its cloud services business, including Red Hat, to benefit from increasing demand in the industry.
Impact on Employees:
Thousands of Jobs Affected: Estimates suggest that between 2,700 and 5,400 employees may lose their jobs, based on a 1-2% reduction in the global workforce.
US Workers Impacted: Some US-based employees will be affected, but IBM expects US employment to remain roughly the same year-over-year.
Reorganization: The company is reorganizing its workforce to prioritize high-growth areas, which may lead to job reassignments and further restructuring ¹ ² ³.
Industry Context:
Tech Industry Trends: The layoffs are part of a larger trend in the tech industry, with companies like Amazon and Microsoft also announcing significant job cuts.
Growth Strategy: IBM's focus on software and AI growth is expected to drive future profitability and competitiveness in the industry
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