IBM, a global leader in technology and consulting, has announced plans to lay off approximately 9,000 employees in the United States in 2025.
This decision is part of a broader workforce restructuring strategy aimed at optimizing operations and aligning with evolving business priorities.
While the layoffs have raised concerns among U.S. employees, there is speculation that this move could lead to an increase in job opportunities in India, where IBM has a significant presence.
IBM Workforce Reduction in the U.S.
The layoffs will primarily impact IBM’s Cloud Classic division, a business unit built on the company’s 2013 acquisition of SoftLayer.
Reports suggest that around 25% of the Cloud Classic team will be affected, along with employees from consulting, sales, and internal IT systems.
Key locations expected to bear the brunt of the layoffs include Raleigh, North Carolina; New York; Dallas, Texas; and California.
IBM’s decision to reduce its workforce comes despite a 1% increase in revenue in the last quarter of 2024, driven by a 10% rise in software sales.
However, other areas of the business, such as consulting and infrastructure, have shown signs of decline, with revenues dropping by 2% and 8%, respectively.
This indicates a strategic shift towards high-margin software and AI-driven solutions.
IBM Layoffs in U.S.: Potential Impact on India
As IBM reduces its workforce in the U.S., there is growing evidence that India could benefit from this restructuring.
Insiders have revealed that IBM has been steadily moving roles to India over the past few years.
The company is leveraging India’s abundant talent pool and lower operating costs to enhance its operations.
This trend is expected to continue, with roles in cloud infrastructure, hybrid cloud, cybersecurity, and consulting likely to be created or expanded in India.
IBM already has a strong presence in India, with offices in cities like Bengaluru, Hyderabad, Pune, and Chennai.
The company relies heavily on India for a significant portion of its workforce. Its annual procurement from the region is valued at approximately $1.25 billion.
Global IT firms are increasingly adopting a “global delivery model” to enhance efficiency and scalability. This shift positions India as a key player in IBM’s future operations.
Employee Concerns and Industry Trends
The layoffs have sparked concerns among IBM employees in the U.S., particularly regarding the company’s new return-to-office requirements.
Employees are now expected to work on-site at least three days a week, with attendance being closely monitored.
This policy has added to the uncertainty and dissatisfaction among the workforce.
IBM’s workforce reduction reflects a broader trend in the tech industry.
Companies are streamlining operations and reallocating resources to stay aligned with evolving market dynamics.
Other tech giants, including Google and Microsoft, have also announced layoffs in recent months.
These layoffs highlight the broader challenges currently faced by the tech industry.
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