IBM is reportedly planning significant layoffs in 2025, with thousands of employees expected to lose their jobs across multiple U.S. locations.
According to The Register, the company may be cutting a quarter of its Cloud Classic workforce, though exact figures remain undisclosed.
While IBM has not officially confirmed the layoffs, CFO James Kavanaugh had earlier hinted at "workforce rebalancing" in line with previous years.
Reports suggest around 9,000 job cuts, affecting employees in Raleigh, New York, Dallas, and California.
Despite these layoffs, IBM’s revenue grew by 1% to $17.6 billion in the last quarter of 2024, driven by a 10% increase in software sales.
However, consulting revenue declined by 2%, and infrastructure revenue fell by 8%, indicating a shift in business priorities.