IBM announced Tuesday it will lay off thousands of employees before the end of the year. The cuts represent a low single-digit percentage of the company’s global workforce. For a 1 percent reduction, that would mean about 2,700 jobs lost.
Scope of the Layoffs
IBM had 270,000 workers worldwide at the end of 2025. A single-digit percentage cut means thousands will lose their jobs. According to Newsweek, a company spokesperson confirmed the action impacts a low single-digit percentage of the global workforce.
The spokesperson told CNBC that while some U.S. roles will be affected, U.S. employment will remain flat year over year. IBM reported a 10 percent jump in software revenue last month. The larger tech sector faces uncertainty from multiple directions.
Industry Trends and Expert Views
Other Tech Companies Cutting Staff
Many tech firms have reduced employee headcounts recently. Amazon announced layoffs for 14,000 corporate employees in October. Meta plans to let 600 workers in its AI unit go. Companies focus on artificial intelligence tools to boost productivity with fewer workers.
Kevin Thompson, CEO of 9i Capital Group, told Newsweek the current environment is filled with uncertainty. Many companies may use this opportunity to reduce what some call pandemic bloat. Firms were forced to keep staff longer than hoped and may now thin their workforce.
Matt Bruno, chief revenue officer at Laivly, said the industry has shifted focus. For years, companies built large experimental AI teams. Now the emphasis moves to precision and measurable impact. The tech industry accelerates toward AI adoption, Thompson added. This brings belief in new efficiencies that allow doing more with less.
Alex Beene, a financial literacy instructor at the University of Tennessee at Martin, said it is difficult to blame AI for these cuts based on initial announcements. Still, this continues a series of major corporate job reductions. Thompson expects more layoff announcements as the year ends. Year-end is when companies evaluate performance, tighten operations, and adjust forecasts.
