Arvind Krishna, CEO of IBM, arrives for the Inaugural AI Insight Forum in Russell Building on Capitol Hill, on Wednesday, September 13, 2023.
Tom Williams | Cq-roll Call, Inc. | Getty Images
IBM announced Tuesday that it will be implementing a workforce reduction within the current quarter, impacting a small percentage of its global employee base. The move comes as the tech giant strategically realigns its resources amidst a dynamic market landscape increasingly shaped by advancements in artificial intelligence.
“In the fourth quarter we are executing an action that will impact a low single-digit percentage of our global workforce,” a company spokesperson confirmed to CNBC. “While this may impact some U.S.-based roles, we anticipate that our U.S. employment will remain flat year over year.”
At the close of 2024, IBM’s global workforce stood at 270,000, as detailed in its latest annual report. A 1% reduction would therefore translate to approximately 2,700 positions being eliminated.
IBM’s decision reflects a broader trend within the technology sector, where companies are actively seeking operational efficiencies and exploring opportunities to integrate AI-driven solutions to augment productivity. This trend has prompted workforce adjustments across various departments and roles.
In recent months, several prominent tech firms have announced similar restructuring initiatives. Amazon revealed plans in October to reduce its corporate workforce and Meta, the parent company of Facebook, indicated adjustments within its AI division. These actions underscore the intensifying pressure on companies to optimize resource allocation and adapt to the transformative potential of AI technologies.
Notably, IBM reported robust earnings on October 22, exceeding market expectations due to a substantial 10% surge in software revenue. The company has been actively diversifying its revenue streams, with a focus on cloud computing, AI-powered solutions, and consulting services. This strategic shift aims to position IBM at the forefront of the rapidly evolving technology landscape.
Since taking the helm in 2020, CEO Arvind Krishna has been instrumental in driving IBM’s expansion and diversification efforts. Under his leadership, the company has prioritized strategic acquisitions, invested heavily in research and development, and fostered a culture of innovation.
Prior to this announcement, IBM implemented staff reductions within its marketing and communications departments in March 2024. These adjustments reflect the company’s commitment to streamlining operations and aligning its workforce with evolving business priorities.
Krishna has previously highlighted the role of AI in optimizing workflows and augmenting human capabilities. Notably, AI agents have assumed responsibilities previously held by approximately 200 employees in human resources, enabling the company to reallocate resources towards sales and software development initiatives.
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