After Amazon, IBM announces thousands of job cuts amid ongoing tech layoff wave

Amid the rapid global shift toward artificial intelligence (AI), IBM has announced a major workforce restructuring that will see thousands of employees laid off before the end of the year. The tech giant revealed that it will be cutting a “low single-digit percentage” of its global workforce as part of its efforts to improve operational efficiency and streamline roles in the age of AI. With IBM employing around 2,70,000 people worldwide, even a 1% reduction translates to at least 2,700 job losses.

A company spokesperson confirmed that this restructuring will be executed in the fourth quarter of 2025, impacting only a small portion of its employees globally. While some of the affected positions will be US-based, IBM stated that its overall workforce in the United States will likely remain stable compared to the previous year. The company emphasized that these job cuts are part of its strategic transformation to align its operations with growing AI adoption and automation across various business functions.

The announcement comes at a time when several major technology companies are undergoing similar workforce reductions due to increasing reliance on AI tools to enhance productivity and reduce costs. Many firms are automating repetitive or administrative roles, thereby reducing the need for human labor in certain departments. IBM’s decision mirrors a broader trend in the tech industry, where AI is simultaneously driving innovation and causing significant job displacement.

The layoffs also reflect a wave of restructuring across corporate America. Several multinational tech companies, including Amazon, Google, and Meta, have been cutting jobs in large numbers as they attempt to optimize costs and improve efficiency. Recently, Amazon announced that it would lay off approximately 14,000 corporate employees as part of a multi-year plan to reduce bureaucracy and operational expenses amid rising investments in AI. Reports indicate that this could expand to as many as 30,000 job cuts, making it the largest layoff round in Amazon’s history.

Despite the job cuts, IBM’s financial performance remains strong. The company reported better-than-expected earnings in October 2025, with a 10% year-over-year increase in revenue from its software segment. This indicates that IBM’s focus on cloud computing, hybrid systems, and AI integration is paying off financially. CEO Arvind Krishna, who took over from Ginni Rometty in 2020, has been instrumental in transforming IBM into a more agile, AI-driven enterprise. Under his leadership, the company has expanded its software and consulting businesses while reducing dependence on legacy hardware operations.

Earlier this year, Krishna revealed that AI agents had already automated the work of about 200 employees in IBM’s human resources department. This automation has allowed the company to redeploy resources toward areas of higher value, such as sales, software development, and AI research. The move demonstrates IBM’s broader vision of using AI not just as a cost-cutting tool but as a driver of long-term growth and innovation.

In conclusion, IBM’s planned layoffs underscore a growing trend in the tech industry, where AI-driven automation is reshaping workforce structures worldwide. While such measures are improving productivity and revenue, they also highlight the ongoing tension between technological progress and job security. As companies like IBM and Amazon continue to embrace AI transformation, the global workforce is likely to experience further disruptions in the years ahead.