In a significant move impacting the tech industry, IBM layoffs have been announced and the company has decided to let go of thousands of employees by the end of 2025. This move came amid a rapid shift towards Artificial Intelligence (AI) and Automation, which will continue to reshape how the tech industry operates worldwide.
According to IBM, the job cuts will affect a “low single-digit percentage” of its worldwide workforce. Having around 2,70,000 employees globally, even a 1% reduction means nearly 2,700 workers will lose their jobs. A company spokesperson said that while some US-based roles may be impacted, IBM’s total employment numbers in the United States will probably remain flat year over year.
Why Are the IBM Layoffs Happening?
The IBM layoffs have come at a time when major organisations are using AI tools to boost productivity and cut costs. IBM’s CEO Arvind Krishna has emphasized that the usage of AI will streamline and organise operations rather than replace human programmers entirely.
In May, Krishna revealed that AI systems had automated work previously done by about 200 employees in the company’s HR department. This efficiency encouraged IBM to shift focus towards hiring more software developers and sales experts, highlighting a change in the workforce priorities.
Despite the layoffs, IBM reported stronger-than-expected earnings in October 2025, driven by a 10% increase in software revenue. The company has also introduced its new Power11 chips, marking the first significant upgrade to its Power line since 2020.
Tech Layoff Trend Continues
The IBM layoffs are part of a bigger trend affecting the tech industry. Several giants, including Amazon, Intel, and UPS have announced large-scale job cuts in recent months. Amazon, for instance, plans to lay off up to 14,000 corporate employees, marking the biggest round of cuts in its history.
Experts say the rise in AI-driven automation is leading companies to reorganise their teams and reduce roles that can now be handled by digital systems. As IBM continues to invest heavily in cloud computing and AI, these layoffs point towards a strategic reallocation of resources rather than financial distress.
What the CEO Says About AI and Jobs
During a tech event earlier this year, Krishna stated, “AI will not replace programmers but will enhance their productivity.” He disagreed with predictions suggesting that AI would soon write 90% of all code, saying that “a realistic figure is closer to 20–30%.”
This balanced view reflects IBM’s strategy of embracing AI without abandoning human talent. However, the ongoing IBM layoffs focus on the growing impact of automation on traditional tech jobs.
The Bigger Picture
While the job losses are concerning, IBM’s focus on AI innovation, hybrid cloud, and software growth may strengthen its long-term competitiveness in the industry. The company aims to position itself as a leader in the AI revolution, even if it means tough short-term decisions.
As the wave of IBM layoffs unfolds, it serves as a reminder that the AI era is not just transforming technology, it’s redefining the global workforce.
