As major big tech companies have recently announced large-scale layoffs one after another, IBM has also joined the wave of job cuts. On November 4 (local time), Bloomberg and other media outlets reported that IBM plans to implement workforce restructuring in the fourth quarter to focus on its software and services divisions.
In a statement released that day, IBM said, "We regularly review our workforce and make adjustments as needed," adding, "In the fourth quarter, we will take measures that will impact a single-digit percentage of our global workforce."
As of the end of last year, IBM's total number of employees was 270,000. Even a 1% reduction would mean laying off 2,700 people.
However, IBM stated that while some U.S.-based employees may be affected by the layoffs, overall employment in the United States is expected to remain nearly the same as last year.
IBM's stock price has continued to rise this year on expectations for its software business. Red Hat and HashiCorp, which IBM has acquired, are driving growth in related business areas, and IBM CEO Arvind Krishna is strengthening the software division to boost cloud service revenue in line with the growth of the artificial intelligence (AI) market.
Recently, the spread of AI has prompted major U.S. companies to implement restructuring measures. Last month, Amazon announced it would lay off 14,000 employees to streamline its organization in response to AI innovation. Meta also cut 600 jobs in its AI division last month to address organizational bloat.
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