IBM lays off thousands of employees because of AI and automation

20th-century technology icon IBM has just announced it will cut thousands of jobs, marking a strong shift towards the wave of AI and automation.

International Business Machines (IBM) confirmed that it will lay off about 2,500-3,000 employees in the fourth quarter of 2025. This move is to restructure the workforce, focusing on AI and hybrid cloud computing.

The cuts come as many major tech companies are also streamlining their operations. Non-US operations are expected to be hit harder due to lower labor costs.

IBM was an unshakeable symbol of 20th-century corporate computing.

The company's transformation began with the sale of its PC division to Lenovo and the separation of Kyndryl in 2021.

Under CEO Arvind Krishna, IBM is betting on its Watsonx AI platform and cloud services.

IBM shares fell nearly 2% following the announcement, reflecting cautious investor sentiment.

Experts say AI is changing the structure of labor, making many positions obsolete.

IBM is a typical example of the trend of “competency-based restructuring” in the new technology era.

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