IBM is Reshaping Its Workforce

IBM (NYSE:IBM) has entered a workforce restructuring process to strengthen its growth strategy in software and artificial intelligence. In this context, thousands of job positions representing a low single-digit percentage of the global workforce are planned to be cut this quarter. A company spokesperson stated that this decision is part of a routine operational review process and added that some positions in the U.S. could be affected, but the overall employee count is expected to remain roughly the same compared to last year.

CEO Arvind Krishna's goal is to transform IBM from a legacy consulting power to a software-focused growth machine. This change has been supported by acquisitions such as Red Hat and HashiCorp, with software becoming IBM's largest segment. With a slowdown in consulting demand due to macroeconomic uncertainties, Krishna's emphasis on hybrid cloud and artificial intelligence-focused services may help keep IBM on its growth agenda in upcoming cycles.

Investors have reacted positively so far. IBM's shares have gained value this year amid expectations that the shift towards artificial intelligence and subscription-based software could accelerate margins and stabilize earnings. The job cuts at IBM, which is expected to have around 270,000 employees by the end of 2024, are being viewed not as a contraction but as a realignment. A leaner, software-focused IBM may be better positioned for the next phase of corporate technology growth.