Imagine waking up to find your job at a tech powerhouse like IBM suddenly vanishing—along with thousands of others in an industry that's supposed to be booming. That's the stark reality facing many professionals right now, as layoffs ripple through the tech world and force us to confront the unsettling intersection of innovation and human employment. But here's where it gets controversial: Is this just a necessary reset in a fast-evolving landscape, or a sign that artificial intelligence is quietly reshaping the workforce in ways that benefit corporations more than people? Let's dive in and unpack the details, because understanding this could help you navigate your own career path.
IBM, the tech giant headquartered in Armonk, New York, has officially announced plans to cut thousands of positions in this quarter alone. According to confirmations on LinkedIn, some of the hardest-hit roles include architects, engineers, and specialists in artificial intelligence, marketing, software engineering, and cloud technology. Picture this: These are the very experts designing the future of tech, yet they're being let go as part of a broader strategy.
The company, which boasts a global workforce of around 270,000 at the end of 2024, is aiming for a low single-digit percentage reduction. A spokesperson explained it this way in an email to CRN: 'IBM’s workforce strategy is driven by having the right people with the right skills to do the work our clients need. We routinely review our workforce through this lens and at times rebalance accordingly. In the fourth quarter we are executing an action that will impact a low single-digit percentage of our global workforce. While this may impact some U.S.-based roles, we anticipate that our U.S. employment will remain flat year over year.' In simpler terms, IBM is focusing on aligning its team with current market demands, ensuring that every employee brings precisely the expertise needed for client projects. For beginners in the tech field, think of it like pruning a garden: You remove the parts that aren't thriving to make room for stronger growth.
This wave of layoffs isn't unique to IBM. Other major players are also making tough decisions this year, trimming their teams amid shifting priorities. Amazon recently unveiled a 14,000-employee reduction, affecting senior program managers, principal designers, applied scientists, and software engineers—echoing similar moves by Jamf, which cut 6 percent of its workforce; Kaseya, with 200 layoffs as part of a targeted investment plan; Google, impacting cloud employees despite record sales; Dell Technologies, eliminating undisclosed sales jobs nationwide; and Microsoft, letting go of about 9,000 staff, including salespeople. It's a trend that's hard to ignore, especially when you consider how these companies are betting big on AI to streamline operations.
Looking ahead, IBM's top goals for 2025 include boosting the share of revenue generated through its channel partners, as highlighted in CRN’s 2025 Channel Chiefs report. This means partnering more closely with distributors and resellers to reach customers, which could soften the blow of these cuts by focusing on collaborative growth.
To get a personal sense of the impact, let's look at some real stories from IBM employees who shared their experiences on LinkedIn. One is a sales enablement architect with over 13 years at the company, who specialized in evaluating and implementing sales tools infused with AI to boost productivity. He designed programs that helped salespeople master these tools for better efficiency—think of him as the coach who trains athletes to use high-tech gear effectively. Another is a writer with more than seven years of experience crafting stories, copy, emails, web pages, and social media content for IBM Systems marketing. Her work brought IBM's products to life in engaging ways, much like a storyteller weaving tales to captivate an audience.
Then there's an advisory software engineer and leader in continuous integration and continuous delivery (CICD)—for those new to the term, CICD is a method that automates the process of combining code changes into a single software project, ensuring faster and more reliable updates. This engineer had over 12 years with IBM. An infrastructure architect with eight-plus years focused on designing robust systems for IBM Cloud, covering everything from servers and storage to networks and physical setups that support client needs. And finally, a site reliability engineer (SRE)—a role dedicated to keeping systems running smoothly, often through automation and security measures—with over eight years specializing in cloud infrastructure, Linux systems, and security-focused tools. These examples illustrate how diverse and skilled IBM's team is, yet even long-tenured pros aren't immune.
This isn't IBM's first round of cuts this year. Earlier, the company reportedly shed thousands from units like SoftLayer (acquired in 2013), Neudesic (acquired in 2022), and federal government services. It paints a picture of ongoing adjustments in a tech world where acquisitions and integrations often lead to overlaps that need trimming.
And this is the part most people miss: At the heart of these layoffs is the transformative power of artificial intelligence, as articulated by IBM CEO Arvind Krishna. Krishna hasn't held back on how AI could replace certain human tasks. In October, at CRN's 2025 XChange Best of Breed Conference, he noted that AI is driving cost efficiencies in areas like customer service, experience, programming, and HR. 'Do more productive companies gain or lose market share? If you gain market share because you’re productive, you’re going to actually have more code to do,' he said. 'What [AI will] let you do is build products that previously were considered too expensive, and now you can.'
Back in May, Krishna told The Wall Street Journal that AI agents had automated the work of a couple hundred IBM HR employees, but this led to more hiring in programming and sales. To clarify for newcomers: Imagine AI handling repetitive tasks like data entry in HR, freeing up humans for creative or strategic roles. In an October CNN interview, Krishna predicted that 60 percent of jobs won't be replaced soon, citing frontline workers, delivery drivers, and cooks. He added that ultra-creative white-collar roles are also safe for now. However, jobs involving repetitive tasks—potentially up to 10 percent today—are at highest risk. 'The question becomes–do we need a lot more people who actually interact with people who build trust?' he mused. 'Then you get more of those jobs.'
This raises a hotly debated point: While Krishna sees AI as a net creator of opportunities, critics argue it disproportionately affects lower-skilled workers, widening inequality. Is AI the hero boosting productivity and innovation, or the villain displacing jobs unfairly? It depends on whom you ask, but it's a conversation worth having.
On a brighter note, IBM's financial health remains strong. In October, the company reported third-quarter results (ending Sept. 30), with total revenue hitting $16.3 billion—a 7 percent increase year over year, excluding currency fluctuations. Growth was fueled by infrastructure, especially a new mainframe refresh cycle, which surged 15 percent. Software revenue climbed 9 percent, and even IBM Consulting—ranked No. 6 on CRN’s 2025 Solution Provider 500—grew 2 percent. These numbers suggest that while workforce changes are happening, IBM is investing in areas that drive long-term success.
So, what do you think? Is IBM's approach to layoffs a smart pivot in the AI era, or a risky gamble that could erode talent and trust? Do you believe AI will ultimately create more jobs than it eliminates, or is it setting the stage for a more divided workforce? Share your views, agreements, or disagreements in the comments—let's discuss!
