Tech giant IBM is set to eliminate nearly 9,000 jobs in the United States in 2025, marking one of the company’s largest workforce reductions in recent years.
While many of these roles will be relocated to India, it remains unclear if AI-driven automation—which has contributed to other IBM job cuts in the past—played a role in this latest round of layoffs.
The cuts, first reported by The Register, will impact multiple IBM divisions, including its Cloud Classic unit. Built from IBM’s 2013 acquisition of SoftLayer, Cloud Classic is seeing about 25% of its workforce affected. Other departments expected to face job losses include consulting, cloud infrastructure, sales, corporate social responsibility, and internal systems teams.
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The layoffs are expected to affect IBM employees across multiple U.S. locations, including Raleigh, North Carolina; New York City and State; Dallas, Texas; and California.
IBM’s Long-Term Offshoring Strategy
The latest job cuts align with IBM’s ongoing strategy of shifting a significant portion of its workforce to lower-cost labor markets, with India being the primary destination.
“They’re trying to move as many roles to India as possible,” a source told The Register.
IBM already has an extensive presence in India, with offices in Bengaluru, Hyderabad, Pune, and Chennai. The company is expected to increase hiring in these cities, particularly in cloud computing, infrastructure, sales, and consulting roles.
A former IBM employee noted that IBM currently lists more job openings in India than in the United States, further reinforcing the company’s commitment to shifting jobs overseas.
IBM CEO Arvind Krishna has openly praised India’s deep talent pool and cost advantages, frequently highlighting it as a critical part of IBM’s future workforce strategy.
The Role of AI in IBM’s Workforce Reduction
Although AI-driven automation has been linked to many job cuts in the tech sector, including previous layoffs at IBM, it is unclear whether AI played a role in this specific round of job reductions.
In 2023, Krishna publicly stated that IBM planned to pause hiring for certain non-customer-facing roles, expecting that AI would eventually replace thousands of jobs. Around 7,800 positions in IBM’s back-office operations were identified as likely to be phased out due to AI advancements.
However, sources familiar with the latest layoffs did not confirm whether automation contributed to the decision.
The tech industry as a whole has seen a wave of job losses linked to AI and cost-cutting measures. Companies including Google, Amazon, Meta, and Microsoft have all cut thousands of jobs, citing automation, restructuring, or shifting business priorities.
New Workplace Policies for Remaining U.S. Employees
For the IBM employees not affected by the layoffs, the company has introduced stricter workplace policies, requiring employees to return to the office at least three days a week starting in late April.
According to sources, IBM will monitor badge swipes, and while employees can request medical exemptions, such requests are reportedly being discouraged by management.
IBM’s return-to-office push is part of a broader trend in the tech sector, as major companies shift away from the remote work policies established during the pandemic. However, some employees suspect that the new policy is designed to encourage voluntary resignations, further reducing IBM’s U.S. workforce without the need for additional layoffs.
IBM has not officially confirmed the total number of positions being moved to India, but the shift reflects a broader transformation in the company’s workforce strategy.
In March 2024, IBM notified employees of impending job cuts within its marketing and communications departments, signaling the start of this latest wave of layoffs.
The job reductions also mirror a larger trend across the tech industry, where companies are increasingly cutting jobs in high-cost regions and expanding in lower-cost labor markets.
While the full impact of these layoffs on IBM’s U.S. operations remains to be seen, it is clear that the company’s strategy is increasingly focused on reducing domestic labor costs while leveraging international markets for growth.