IBM cutting several thousand jobs in latest layoffs
Summary
IBM has begun notifying several thousand employees with Resource Action (RA) notices that give them 30 days to find another role internally or face redundancy. Insiders told The Register the cuts are concentrated in the US Infrastructure organisation — roughly 45% of that group — and potentially more than half of the US Cloud group. IBM told Bloomberg the action will affect a “low single-digit percentage” of its global workforce, which would equate to roughly 2,700–5,400 roles based on its 2024 headcount figures.
Sources and forum posts indicate many affected staff are unlikely to be rehired internally, and some point to middling cloud performance and a push for infrastructure profitability as drivers. IBM reported Q3 2025 profits of $1.7bn on $16.3bn revenue; Infrastructure revenue rose 17% to $3.6bn. The company currently lists far more openings in India than in the US, and the practice of offshoring remains a grievance among employees.
Key Points
- IBM has issued Resource Action notices to several thousand staff, starting this week, with 30 days to find new internal roles.
- Insiders estimate about a 45% headcount reduction in IBM’s US Infrastructure group; over 50% cuts are reported in the US Cloud group.
- IBM’s public statement says the reductions are a “low single-digit percentage” of the global workforce — approximately 2,700–5,400 roles.
- Sources suggest cuts are linked to underwhelming cloud results and management priorities for profitability in infrastructure.
- IBM’s Q3 2025 showed $1.7bn profit on $16.3bn revenue; Infrastructure revenue was up 17% with strong margins.
- Employee headcount signals and 401(k) participant figures indicate a shrinking US workforce compared with past years.
- Job listings show many more openings in India than in the US, reinforcing offshoring concerns among staff.
Context and relevance
This round of cuts sits alongside ongoing tech-sector restructuring: other large firms such as Amazon and Oracle have also announced significant reductions. For the industry, large-scale job action at IBM — a long-standing infrastructure and enterprise software player — signals continued pressure to reshape staffing for cloud competitiveness and profitability. For employees and partners, it raises questions about capacity in support and infrastructure teams and potential shifts in where IBM sources talent globally.
Why should I read this?
Short version: if you work in enterprise IT, partner with IBM, or follow cloud-market shifts, this matters. Big changes at IBM affect contracts, support availability and talent supply — and might hint at where enterprise cloud economics are heading. Quick, digestible overview so you don’t have to trawl forums and filings yourself.
Author style
Punchy: this is not a minor headcount tweak. The numbers and source reports make it a significant move for IBM’s infrastructure and cloud operations — worth digging into if you’re impacted or tracking enterprise cloud strategy.