Preparation for big layoffs in IBM
IBM Layoffs: The crisis looming over jobs in the world of technology is not showing signs of abating. The year 2025 is coming to an end but the phase of layoffs in big companies has not stopped yet. Now the name of the leading American company IBM has also been added to this list. The company has confirmed in a big announcement that it is preparing to fire thousands of its employees. This step is part of the ongoing turmoil in the tech sector across the world.
This is the real reason for layoffs
IBM says the move is part of its “regular workforce review process.” According to the company, it assesses its resources from time to time and makes adjustments as per the need. The company said in a statement that this step is being taken in the fourth quarter. However, it is a matter of relief that this layoff will affect less than one percent of the company’s total global employees.
Effect of slow pace of growth
This layoff is happening at a time when IBM wants to focus its full strength on software, cloud services and especially Artificial Intelligence (AI). The company will increase focus on these segments in the coming time. A Reuters report states that last month there was a slowdown in the growth of the company’s cloud software segment. After this news, there was a slight decline in the company’s shares, although its shares have risen by 35% so far this year. By the end of 2024, the company had about 2.7 lakh employees. It is believed that this latest cut may have the biggest impact on the employees working in America.
Wave of layoffs continues in tech sector
IBM is not alone in this layoff. The entire tech sector is currently going through AI-based changes. According to data from the Layoffs.fyi website, so far in 2025, 218 tech companies have laid off more than 1,12,732 employees. Apart from IBM, big companies like Amazon, Microsoft and TCS are also doing layoffs to change their operations.
Recently, Amazon also announced last week to lay off about 14,000 people from its global workforce. Amazon has said that the affected employees will be given a transition period of 90 days so that they can look for another job within the company.