IBM announced it will lay off a small percentage of its global workforce in the fourth quarter — described as a “low single-digit percentage”, likely around 1% (≈2,700 jobs). The company emphasized that U.S. employment will remain flat year over year, suggesting most cuts will occur internationally. The move aligns with broader industry trends as tech companies streamline operations and leverage AI tools to boost productivity.

IBM’s decision follows a strong third quarter, where software revenue rose 10%, helping the company beat earnings expectations. CEO Arvind Krishna has been focusing on expanding IBM’s software and cloud business since 2020. Earlier in 2024, IBM had already trimmed marketing and communications staff and replaced about 200 HR roles with AI systems, reallocating resources toward sales and software development.

Other Tech Company Job Cuts

• Amazon: Cut 14,000 corporate employees in October 2025 as part of a broader cost-control and restructuring effort.

• Meta (Facebook parent): Eliminated 600 jobs in its AI division, streamlining operations within its advanced research units.

• Microsoft: Not cutting staff but planning to hire selectively with “a lot more leverage” through AI-driven productivity gains, signaling slower overall headcount growth.

IBM shares are down -1.33% after the low price today stalled the fall at the 100 hour MA. The current price is at $300.43 down -$4.30 or -1.33%. The price reached a new all time high last weeek at $319.35.