According to CNBC, IBM is cutting a “low single-digit percentage” of its global workforce in the fourth quarter. The company employed 270,000 people at the end of 2024, which means even a 1% reduction would eliminate approximately 2,700 jobs. CEO Arvind Krishna is overseeing the cuts, though the company claims U.S. employment will remain “flat year over year.” IBM’s spokesperson described the action as impacting “some U.S.-based roles” while maintaining the overall employment level. The announcement comes as technology companies continue workforce reductions across the industry.
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The productivity play
Here’s the thing about these “low single-digit percentage” cuts – they’re becoming the new normal in tech. IBM’s playing the same card we’ve seen from dozens of other companies this year. They’re framing it as productivity optimization, but everyone knows what’s really happening. Companies are looking at AI tools and realizing they can do more with fewer people.
But let’s be real – this isn’t just about efficiency. When you’re cutting thousands of jobs while claiming employment will stay flat, something doesn’t add up. Either they’re planning to hire in other areas while cutting elsewhere, or they’re being deliberately vague about the actual impact. My money’s on the latter.
Krishna’s track record
Arvind Krishna has been pushing IBM’s AI and hybrid cloud strategy hard since taking over as CEO. Remember when he predicted AI would replace certain back-office functions? Well, here we are. The man isn’t shy about his automation ambitions.
What’s interesting is the timing. Fourth quarter cuts are brutal – right before the holidays. And calling it a “small percentage” when we’re talking about thousands of real people losing their jobs? That’s some corporate spin if I’ve ever seen it.
Bigger tech trend
IBM isn’t alone in this. We’ve seen layoffs from Google, Amazon, Microsoft – basically everyone who’s invested heavily in AI infrastructure. They’re all doing the same math: if AI can handle customer service, coding assistance, and administrative work, why keep paying humans to do it?
The question is whether this is short-term cost cutting or a fundamental shift in how these companies operate. I’m leaning toward the latter. Once companies realize they can maintain output with smaller teams, they rarely go back to previous staffing levels.
So while IBM frames this as a minor adjustment, it feels like part of a much larger transformation. One that’s probably going to continue through 2025 and beyond. The tech workforce is being reshaped in real time, and it’s messy, uncomfortable, and happening faster than anyone expected.
