In the fourth quarter of 2025, IBM is poised to lay off thousands of employees. The layoffs will predominantly impact its U.S. headquarters as well as some of its global branches.

This move is part of IBM's strategy to streamline its cost structure and redirect the company's strategic emphasis towards high - growth software and service sectors. By doing so, IBM aims to bolster its competitiveness in key areas like cloud computing and artificial intelligence, which are rapidly evolving and highly competitive fields in the tech industry.

A company spokesperson mentioned that the workforce would undergo periodic reviews, and corresponding adjustments would be made as needed. It is anticipated that this round of layoffs will affect a small single - digit percentage of IBM's global workforce. This approach aligns with common corporate practices in the tech world, where companies often adjust their staffing levels to stay agile and competitive in a fast - paced market.