International Business Machines Corp (IBM) is undertaking a significant workforce reduction, with thousands of roles set to be cut in the current quarter. This strategic move aligns with the company's intensified focus on software and services growth, as reported by Bloomberg News. A company spokesperson confirmed that this action would impact a low single-digit percentage of IBM's global workforce, emphasizing that the company routinely reviews and rebalances its workforce.

The decision to reduce its workforce comes after IBM reported a slowdown in growth within its crucial cloud software segment last month, according to Reuters. While the company's shares had seen an increase of over 35% this year, they experienced a nearly 2% dip following the announcement.

Regarding the impact, some US-based employees are expected to be affected by the job reductions. However, IBM anticipates that overall employment levels in the United States will remain relatively stable year-over-year. As of the end of 2024, IBM's global workforce stood at approximately 270,000 employees.

IBM's layoffs are part of a larger, ongoing trend across the global tech industry. In recent months, numerous major tech companies have announced significant workforce reductions, largely driven by a sector-wide shift towards artificial intelligence and a re-evaluation of strategic priorities. Data from Layoffs.fyi, a platform tracking global tech industry layoffs, indicates a substantial impact, with over 112,732 tech workers laid off across 218 tech companies in 2025 alone.

Other prominent tech giants have also implemented substantial job cuts. Amazon, for instance, announced a reduction of approximately 14,000 people from its global corporate workforce, with further cuts anticipated. The online retailer initiated layoffs across multiple divisions and offered most affected workers 90 days to seek new internal roles, with recruiting teams prioritizing these candidates.

India's largest IT services firm, Tata Consultancy Services (TCS), also experienced a workforce reduction, with its total employee count falling by 19,755 to 593,314 as of the second quarter of the financial year 2025-26. Similarly, Microsoft, the second most valuable publicly listed company globally, has laid off over 15,000 employees in 2025. Despite these cuts, Microsoft CEO Satya Nadella has stated the company's plans to expand its workforce, albeit with a more strategic and leveraged approach in the post-AI revolution era.