IBM's Massive Job Cuts: 9,000 Roles Slashed in the US Amid Shift to India

Major Layoffs at IBM

Tech giant IBM is preparing to cut approximately 9,000 jobs in the US by 2025, significantly impacting various divisions, especially the Cloud Classic unit. Reports from The Register indicate that a substantial number of these roles are expected to transition to India.

Affected Divisions

The layoffs will affect multiple departments, including:

• Cloud Classic, which has been hit hardest with about 25% of its team facing cuts.
• Consulting, corporate social responsibility, cloud infrastructure, sales, and internal systems teams.

Locations of Job Cuts

Confirmed job reductions are occurring in:

• Raleigh, North Carolina
• New York City and State
• Dallas, Texas
• California

Strategic Shift to India

Sources describe this action as a “resource action” aimed at moving roles to India, a strategy that has been underway for years. IBM's CEO, Arvind Krishna, has previously noted the company's focus on India as a key talent hub, and the current restructuring is expected to expand roles in India, particularly for those skilled in cloud computing, infrastructure, sales, and consulting.

New Workplace Policies for Remaining Employees

For employees who remain in the US, new workplace policies are being implemented:

• Employees must attend the office at least three days a week starting late April.
• Badge swipes are being monitored, and while medical exemptions are permitted, they are reportedly discouraged by management.

While IBM has not officially confirmed the total number of job cuts, insiders suggest this reflects a broader shift in the company’s global workforce strategy. In March 2024, employees were notified of impending job losses in the marketing and communications departments, indicating ongoing challenges within the company.

Conclusion

The information presented reflects a significant change in IBM's operational strategy, highlighting the ongoing trend of shifting jobs to lower-cost markets like India, while also tightening policies for those who remain in the US.