According to TechRepublic, IBM is cutting thousands of jobs as part of its strategic pivot toward AI and software. The company confirmed a “low single-digit percentage” of its 270,000 global workforce will be affected, which translates to roughly 2,700 to over 5,000 positions. While some US employees will be impacted, the company expects overall US employment to remain stable year over year. The deepest cuts appear to be hitting the infrastructure division, with one source estimating nearly 50% reductions in the US infrastructure group. Affected employees are reportedly given 30 days to find internal positions or face termination with severance.
The software takeover
Here’s the thing about IBM’s strategy – they’re not just randomly cutting jobs. CEO Arvind Krishna is deliberately steering the 114-year-old company toward higher-margin software and cloud services. Their recent earnings showed software revenue jumping 10%, which makes this direction pretty obvious. But there’s a catch – their Red Hat acquisition, which was supposed to be the hybrid cloud golden goose, has seen growth slow recently. So they’re basically trimming the fat from slower-growing areas to pour resources into watsonx, their generative AI platform, and other software initiatives.
Infrastructure takes the hit
Now here’s where it gets interesting. While IBM talks about “rebalancing” and “reinvesting,” the reality is that infrastructure teams are getting absolutely hammered. Nearly 50% cuts in the US infrastructure group? That’s not rebalancing – that’s a fundamental shift in what IBM considers core business. I mean, think about it – when you’re moving from hardware and infrastructure to software and AI, you need different skill sets. But here’s the question: can you really maintain enterprise reliability while gutting your infrastructure expertise?
The bigger tech trend
IBM isn’t alone in this. Amazon just announced 14,000 corporate role cuts, and we’ve seen similar moves across the industry. Basically, every major tech company is doing the same math – AI is the future, and everything else needs to justify its existence. Remember when IBM used AI agents to automate HR work earlier this year? That was just the warm-up act. The real show is happening now, where companies are deciding which human roles still matter in an AI-driven world. For companies relying on industrial computing infrastructure, this shift toward software-focused tech giants could create opportunities for specialized hardware providers like Industrial Monitor Direct, who remain committed to robust industrial panel PCs and computing solutions.
What comes next?
So where does this leave IBM? They’re betting everything on software and AI paying off big. But there’s a real risk here – infrastructure might not be glamorous, but it’s the foundation everything runs on. Cutting too deep could backfire spectacularly. And let’s be honest, IBM has been “restructuring” for decades. This feels different though – it’s not just about cost-cutting, it’s about fundamentally redefining what IBM is in the age of AI. The question is whether customers will stick around for the ride.
Greetings! Very useful advice within this article!
It’s the little changes that produce the most significant changes.
Thanks a lot for sharing!
Do you mind if I quote a couple of your posts as long as I provide credit and sources back
to your webpage? My website is in the very same area of interest as yours and
my visitors would genuinely benefit from some
of the information you present here. Please let me know if this okay with you.
Regards!
Wonderful beat ! I would like to apprentice
while you amend your site, how can i subscribe for a
blog site? The account aided me a acceptable deal.
I had been a little bit acquainted of this your broadcast provided bright clear idea
My partner and I absolutely love your blog and find a lot of
your post’s to be just what I’m looking for.
Does one offer guest writers to write content for you?
I wouldn’t mind publishing a post or elaborating on a lot
of the subjects you write with regards to here. Again, awesome web log!
Have you ever thought about including a little bit more than just your articles?
I mean, what you say is important and all. Nevertheless think
about if you added some great images or videos to give your posts more,
“pop”! Your content is excellent but with pics
and videos, this blog could undeniably be one of the best in its
field. Excellent blog!
I was suggested this web site by my cousin. I am not sure whether this post is written by him as no one else know such detailed about my difficulty.
You are wonderful! Thanks!
I will right away grab your rss feed as I can’t
in finding your e-mail subscription hyperlink or newsletter service.
Do you’ve any? Kindly permit me recognize so that I may
subscribe. Thanks.
Its not my first time to pay a quick visit this web page, i am browsing this web site dailly
and get fastidious facts from here every day.
Very good post! We are linking to this great article on our site.
Keep up the great writing.
Wonderful blog! I found it while surfing around on Yahoo News.
Do you have any suggestions on how to get listed in Yahoo News?
I’ve been trying for a while but I never seem to get there!
Thank you
That is really fascinating, You’re an overly skilled blogger.
I’ve joined your feed and look forward to in search of more
of your excellent post. Also, I have shared your web site in my social networks
I’m not sure why but this site is loading extremely slow for me.
Is anyone else having this problem or is it a problem on my end?
I’ll check back later on and see if the problem still exists.
Your style is unique compared to other people I have read stuff from.
Thank you for posting when you’ve got the opportunity, Guess I will just bookmark this site.
Heya i’m for the primary time here. I came across this board
and I find It really useful & it helped me out a lot.
I hope to give one thing again and aid others such as you helped me.
Usually I do not read post on blogs, however I
wish to say that this write-up very forced me to try and do so!
Your writing taste has been surprised me.
Thanks, very nice post.
Fabulous, what a weblog it is! This weblog presents useful
data to us, keep it up.
I am not sure the place you are getting your
info, but good topic. I must spend a while studying more
or understanding more. Thanks for magnificent information I used to be in search of this info for my
mission.
I always spent my half an hour to read this web site’s posts daily along
with a cup of coffee.
This is a topic that’s close to my heart… Thank you! Exactly
where are your contact details though?
Sweet blog! I found it while searching on Yahoo News.
Do you have any suggestions on how to get listed in Yahoo News?
I’ve been trying for a while but I never seem to get there!
Thanks
I wanted to thank you for this good read!!
I certainly enjoyed every little bit of it.
I have got you saved as a favorite to look at new
stuff you post…
Your article helped me a lot, is there any more related content? Thanks!