The wave of job cuts in the global tech industry shows no sign of slowing down. After Amazon and Meta, tech giant IBM has announced that it will lay off around 2,700 employees — roughly 1% of its global workforce — as part of a broader restructuring effort.
The company confirmed that the move will impact a small portion of its U.S. workforce, though overall headcount in the country is expected to remain steady over the year. IBM employs around 270,000 people globally, and the job reductions are expected to be completed before the end of 2025.
Industry analysts say IBM’s decision is part of a growing trend among large technology firms that are cutting costs, streamlining operations, and leaning more heavily on artificial intelligence to maintain productivity with smaller teams. Despite reporting a 10% jump in software revenue recently, IBM is restructuring parts of its business to adapt to changing market demands and new technologies.
Kevin Thompson, CEO of 9i Capital Group, told Newsweek that many companies are using this uncertain economic phase to trim what he called “pandemic bloat.” He said, “Many companies were forced to keep staff longer than they had hoped, and perhaps this would allow them to thin their workforce.”
Other tech giants have made similar moves. In October, Amazon announced plans to slash 14,000 corporate jobs, while Meta revealed cuts affecting around 600 employees from its AI division. Analysts believe these layoffs signal a new phase for Big Tech — one focused less on expansion and more on efficiency.
Matt Bruno, Chief Revenue Officer at Laivly, noted that the industry’s focus is shifting from building experimental AI teams to embedding AI into daily business workflows. This shift allows companies to automate tasks and reduce reliance on large human teams.
While some experts believe AI is a major factor behind these job cuts, others caution against oversimplifying the trend. Alex Beene, a financial literacy instructor at the University of Tennessee, said, “It’s difficult to say if AI alone is driving these layoffs, but the fear that automation will replace jobs is definitely growing.”
With IBM joining the list of companies tightening their workforce, experts say more layoffs across the tech sector are likely in the coming months — a sign that even as technology advances, job security in the industry remains uncertain.
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