In yet another chapter of the ongoing layoff saga, this time IBM has joined the list of tech giants trimming their workforce. The company announced plans to let go of thousands of employees by the end of the year, citing restructuring amid its growing focus on artificial intelligence (AI).
IBM said the cuts would affect a “low single-digit percentage” of its global workforce. With around 270,000 employees worldwide, even a one percent reduction could translate to over 2,700 job losses.
IBM's declaration arrives amid a trend where numerous technology companies are aiming to reduce their workforce by enhancing their dependence on AI tools to boost efficiency. Although these layoffs have unsettled corporate America, indications suggest that job security is uncertain for all, as many of these firms also have substantial offices in countries such as India and maintain a significant presence there.
“In the fourth quarter, we are executing an action that will impact a low single-digit percentage of our global workforce. While this may impact some US-based roles, we anticipate that our US employment will remain flat year over year,”a representative of the company told CNBC.
Interestingly, the IBM layoff announcement comes on the heels of a strong earnings report. In October, IBM posted better-than-expected results, driven by a 10% surge in software revenue. Since taking over as CEO in 2020, Arvind Krishna has been credited with steering the company toward steady growth and a broader revenue base.
Amazon recently revealed plans to dismiss approximately 14,000 corporate staff members to streamline operations and reduce expenses in the AI era. This move is reportedly the most significant layoff in the company's history, with some sources suggesting the total number of job reductions might climb to 30,000.