Global technology innovator, IBM, is said to be “rebalancing” its workforce and axe thousands of roles this quarter as it shifts its focus to higher-growth software and services, a US-based media company reported on Tuesday.
“We routinely review our workforce through this lens and at times, rebalance accordingly,” the media house quoted a company spokesperson as saying, who also said that “in the fourth quarter, we are executing an action that will impact a low single-digit percentage of our global workforce.”
The company employed almost 2,70,000 workers as of the end of 2024.
Last month, it had recorded a slowdown in growth in the key cloud software segment, which alarmed investors betting on tech companies’ ability to benefit from in-demand cloud services.
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Under its chief executive, Arvind Krishna, IBM has focused on software as it looks to benefit on increased spending on cloud services through its “Red Hat” division, as businesses integrate artificial intelligence technology.
However, in the latest round of job cuts, the firm’s US workers may be affected, although employment in the country is anticipated to remain roughly the same year over year, the report said, citing an IBM spokesperson.
IBM shares were down close to 2 per cent on Tuesday.
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