Tech giant IBM is set to cut around 9,000 jobs in the US in 2025, with a significant portion of the affected roles expected to shift to India, The Register reported citing sources familiar with the matter.
While exact figures remain undisclosed, the layoffs will impact several divisions, including the company’s Cloud Classic unit the news publication said citing sources.
The Cloud Classic division, built on IBM’s 2013 acquisition of SoftLayer, is reportedly seeing around a quarter of its team affected by the cuts.
Employees from consulting, corporate social responsibility, cloud infrastructure, sales, and internal systems teams reporting to IBM’s chief information officer are also claimed to be impacted.
Job cuts have been confirmed in Raleigh, North Carolina; New York City and State; Dallas, Texas; and California, the publication said.
One source described the move as a “resource action” intended to facilitate shifting employment to India, a strategy that has reportedly been in motion for several years.
“They’re trying to move as many roles to India as possible,” a source told the news publication.
Another former employee noted that IBM currently lists more job openings in India than in the US, reflecting the company’s ongoing strategy to tap into India’s large talent pool and lower operating costs.
IBM CEO Arvind Krishna has previously acknowledged the company’s focus on India as a major talent hub.
The current restructuring is expected to create or expand roles in India, particularly for professionals with expertise in cloud computing, infrastructure, sales, and consulting.
IBM already maintains a significant presence in Bengaluru, Hyderabad, Pune, and Chennai.
For those remaining at IBM in the US, new workplace policies are being enforced.
Employees spared from redundancy have been instructed to attend the office at least three days a week starting late April, the report said.
According to sources, badge swipes are being monitored, and medical exemptions — while allowed — are reportedly discouraged by management.
While IBM has not officially disclosed the total number of job cuts or addressed the full extent of the restructuring, insiders suggest this move reflects a broader shift in the company’s global workforce strategy.
In March 2024, IBM employees were notified of impending job losses within its marketing and communications departments during a meeting.
“IBM to slash nearly 9,000 jobs in US” was originally created and published by Verdict, a GlobalData owned brand.
The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
