Tech giant IBM is reportedly planning to eliminate approximately 9,000 jobs in the United States in 2025, according to sources cited by The Register. This strategic shift involves relocating a significant number of these roles to India.
The exact number of impacted employees remains undisclosed, but the layoffs are expected to affect multiple divisions within IBM, including the Cloud Classic unit, which was built upon the acquisition of SoftLayer in 2013. Reports indicate that approximately a quarter of the Cloud Classic team will be affected by these cuts.
Other departments potentially impacted include consulting, corporate social responsibility, cloud infrastructure, sales, and internal systems teams reporting to IBM’s chief information officer.
Job cuts have been reportedly confirmed in several locations across the US, including Raleigh, North Carolina; New York City and State; Dallas, Texas; and California.
Sources describe this move as a “resource action,” with the primary goal of transferring employment opportunities to India. This strategy has reportedly been underway for several years, with one source stating, “They’re trying to move as many roles to India as possible.”
Supporting this claim, a former employee noted that IBM currently lists more job openings in India than in the US, signaling a clear intent to leverage India’s vast talent pool and reduce operational expenses.
IBM CEO Arvind Krishna has previously emphasized the importance of India as a major talent hub for the company. This restructuring is anticipated to generate new roles or expand existing teams in India, particularly for professionals with expertise in cloud computing, infrastructure, sales, and consulting. IBM already has a substantial presence in cities like Bengaluru, Hyderabad, Pune, and Chennai.
For US-based employees who remain with IBM, new workplace policies are being implemented. They are now required to work from the office at least three days a week, starting in late April. Badge swipes are reportedly being monitored, and while medical exemptions are permitted, sources suggest they are discouraged by management.
While IBM has not officially confirmed the specific number of job cuts or the full scope of the restructuring, insiders believe this move signifies a broader transformation in the company’s global workforce strategy. In March 2024, employees within IBM’s marketing and communications departments were notified of impending job losses.
This evolving situation underscores the dynamic nature of the tech industry and the ongoing efforts of major players like IBM to optimize their operations on a global scale.