IBM cutting thousands of jobs in the fourth quarter

In a recent announcement, IBM revealed plans to reduce its workforce by a small percentage during the current quarter. A spokesperson indicated, "In the fourth quarter we are executing an action that will impact a low single-digit percentage of our global workforce." While some positions in the U.S. may be affected, the company expects overall U.S. employment to remain stable compared to the previous year. As of the end of 2024, IBM's workforce stood at approximately 270,000 employees. A reduction of just 1% would equate to around 2,700 job losses. This decision aligns with a broader trend in the technology sector, where companies are seeking to enhance productivity and efficiency, often by integrating more artificial intelligence solutions into their operations. Notably, other major tech firms have also been implementing layoffs recently. Amazon announced the elimination of 14,000 corporate positions, while Meta, the parent company of Facebook, confirmed the dismissal of 600 workers from its AI division. In a positive turn, on October 22, IBM reported earnings that exceeded expectations, driven by a robust 10% increase in revenue from its software division. This growth has been a significant achievement for CEO Arvind Krishna, who has been steering the company towards a more diverse revenue base since taking over from Ginni Rometty in 2020. Earlier this year, in March, IBM had already let go of several employees from its marketing and communications teams.