IBM to Cut 2,700 Jobs Amid Expanding Wave of Tech Layoffs
The global technology sector is facing yet another wave of job cuts as IBM becomes the latest major company to announce layoffs. The tech giant revealed plans to cut around 2,700 positions — roughly 1% of its worldwide workforce — as part of an ongoing restructuring initiative aimed at improving efficiency and aligning with new business priorities.
Although the layoffs will affect a small portion of IBM’s U.S. employees, the company stated that its overall headcount in the country is expected to remain steady throughout the year. IBM currently employs about 270,000 people globally, and the job reductions are anticipated to be completed before the end of 2025.
This announcement follows similar moves from other leading technology companies such as Amazon and Meta, highlighting the continuing instability within the sector.
Despite steady growth in certain segments, many tech firms are under pressure to adapt to shifting market demands, slower global economic growth, and the increasing integration of artificial intelligence (AI) into business operations.
AI, Cost Optimization, and the Push for Efficiency
Industry observers say IBM’s decision is consistent with a broader pattern seen across Big Tech, where companies are tightening budgets, optimizing resources, and restructuring to rely more heavily on AI-driven solutions.
Even though IBM recently reported a 10% increase in software revenue, the firm is reorganizing its business units better to position itself for the next phase of digital transformation.
Kevin Thompson, CEO of 9i Capital Group, told Newsweek that many organizations are using this period of economic uncertainty to correct what he called “pandemic bloat.”
He explained that during the pandemic, many firms held on to more staff than necessary due to unpredictable market conditions, and are now right-sizing their workforce to achieve sustainable growth.
Other major players in the industry are also making similar adjustments. Amazon announced plans in October to eliminate 14,000 corporate roles, while Meta revealed job cuts affecting approximately 600 employees in its AI division.
Analysts interpret these moves as part of a larger shift — one where Big Tech is moving from rapid expansion and innovation to operational efficiency and automation.
Matt Bruno, Chief Revenue Officer at Laivly, observed that the tech industry’s focus is changing. “We’re seeing companies move away from building isolated, experimental AI teams toward embedding AI directly into daily workflows,” he said.
This integration, Bruno added, allows companies to automate more processes and depend less on large human teams, leading to leaner but more technology-powered organizations.
Experts Caution Against Oversimplifying the Trend
While artificial intelligence and automation are certainly influencing workforce reductions, experts warn that these aren’t the only factors behind the layoffs. Alex Beene, a financial literacy instructor at the University of Tennessee, noted that “it’s difficult to say if AI alone is driving these layoffs, but the fear that automation will replace jobs is definitely growing.”
Beene and other analysts emphasize that a combination of factors — including rising operational costs, changing consumer demand, and investor pressure for profitability — are prompting companies to make difficult staffing decisions.
With IBM now joining Amazon, Meta, and others in cutting jobs, experts predict more layoffs could follow across the technology landscape in 2025. The trend signals a sobering reality: even as AI and automation promise greater innovation and productivity, they also bring heightened uncertainty for workers.
As the tech industry continues to evolve, the balance between innovation, efficiency, and employment stability remains a key challenge — and a defining issue for the future of work.
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