IBM to cut thousands of jobs as it shifts focus to software amid AI boom
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IBM in October saw a slowdown in growth in the key cloud software segment, raising alarm bells about its ability to benefit more from booming AI-related demand.
PHOTO: REUTERS
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BENGALURU - IBM will cut roles this quarter, the company said on Nov 4, potentially impacting thousands of employees while it shifts focus towards its high-margin software segment, as Wall Street hones in on the company’s ability to benefit from artificial intelligence-linked cloud demand.
“We routinely review our workforce… and at times rebalance accordingly,” the company said in a statement. “In the fourth quarter, we are executing an action that will impact a low single-digit percentage of our global workforce.”
A massive supplier of technology to businesses, IBM joins other companies including Amazon, Meta and Google that have made recent staffing cuts as they race to invest more in the AI boom.
Many executives have predicted more efficiency gains as the technology assists workers with coding and other tasks.
Under chief executive Arvind Krishna, IBM has doubled down on software as it looks to tap increased spending on cloud services through its “Red Hat” division, as businesses integrate AI technology.
However, IBM in October recorded a slowdown in growth in the key cloud software segment, raising alarm bells among investors betting heavily on Big Blue’s ability to benefit more from booming cloud services demand.
Its shares, which have risen over 35 per cent in 2025, were down close to 2 per cent on Nov 4.
IBM employed about 270,000 workers as at the end of 2024.
Some US workers may be affected by the job reductions, but employment in the country is anticipated to remain roughly the same year over year, IBM said. REUTERS, NYTIMES
