IBM is preparing for a major workforce reduction of approximately 9,000 employees across various locations in the United States as part of its corporate restructuring initiative.
The job cuts are expected to heavily impact IBM's Cloud Classic operations, with about 25% of staff in that division facing potential layoffs. The reductions will affect multiple teams, including consulting, sales, cloud infrastructure, corporate social responsibility, and internal systems departments.
Major US locations targeted for the workforce reduction include New York City, Dallas, Raleigh, and various sites across California and Texas. The company appears to be shifting many positions to India, where IBM maintains large operations in cities like Bengaluru, Hyderabad, Pune, and Chennai.
While IBM has not officially confirmed the exact number of layoffs, CFO James Kavanaugh previously indicated plans for "workforce rebalancing" in line with recent years. The remaining US employees will face new workplace requirements, including mandatory office attendance three days per week starting in late April, with badge swipes being monitored.
The restructuring comes as IBM reported mixed financial results, with overall revenue growing 1% to $17.6 billion in Q4 2024. While software revenue increased by 10%, consulting and infrastructure segments saw declines of 2% and 8% respectively.
The news coincides with CEO Arvind Krishna receiving a 23% compensation increase to $25 million. IBM joins other major tech companies like HP, Meta, and Amazon that have recently announced substantial workforce reductions as part of their restructuring efforts.