In the latest development, IBM has announced major workforce reductions as part of its global restructuring plan to focus on artificial intelligence and cloud-based services. CEO Arvind Krishna drives the focus on operations to prioritize its software segment and strengthen future growth.
With around 2,70,000 employees worldwide, the company confirmed that a “small percentage” of global staff will be affected, though reports suggest that thousands of jobs are at risk. The move aims to streamline resources and align the company’s focus with emerging technologies.
Arvind Krishna’s Strategic Vision for IBM’s Future
IBM CEO Arvind Krishna continues to lead the company’s transition toward high-margin software and AI solutions. Through its Red Hat division, IBM has significantly expanded its presence in hybrid cloud services. Krishna’s vision emphasizes that the future of IT lies in artificial intelligence, automation, and cloud integration.
The restructuring reflects this direction, as IBM prepares to enhance its technological capabilities and invest more heavily in next-generation digital infrastructure. The move marks another major step in IBM’s transformation journey over the past few years.
IBM Shares Fell By 2%
Following the announcement, IBM shares fell by nearly 2%, although they have still gained over 35% in 2024. Investors are closely watching how IBM’s renewed focus on AI and automation technologies will help recover the lost pace in cloud revenue. Market analysts see the layoffs as part of a larger efficiency push to stabilize earnings.
IBM confirmed that the job cuts will also affect some employees in the United States, though the overall employment outlook in the country remains stable. The company stated that the layoffs aim to rebalance resources and support its long-term technological priorities.
Swastika Sruti is a Senior Sub Editor at NewsX Digital with 5 years of experience shaping stories that matter. She loves tracking politics- national and global trends, and never misses a chance to dig deeper into policies and developments. Passionate about what’s happening around us, she brings sharp insight and clarity to every piece she works on. When not curating news, she’s busy exploring what’s next in the world of public interest. You can reach her at [swastika.newsx@gmail.com]
