These layoffs follow last week’s reported cuts within IBM’s Marketing and Communications division, which were disclosed in an internal meeting led by Senior Vice President Jonathan Adashek .
IBM is reportedly laying off thousands of employees across multiple locations in the U.S., with its Cloud Classic division experiencing some of the most significant job cuts. While the exact number of affected employees remains undisclosed, insiders suggest the layoffs could impact around 9,000 workers.
According to sources speaking to The Register, IBM has been implementing job cuts across several business units, including consulting, corporate social responsibility, cloud infrastructure, sales, and internal IT teams reporting to the company’s Chief Information Officer. However, the most significant impact appears to be within Cloud Classic, IBM’s infrastructure-as-a-service (IaaS) division, which evolved from its 2013 acquisition of SoftLayer. Reports indicate that approximately 25% of Cloud Classic employees are being let go.
Despite the scale of the layoffs, IBM has not publicly acknowledged the cuts, making it difficult to determine whether this is part of a structured round of redundancies or an ongoing workforce reduction strategy. The company routinely carries out layoffs under the guise of “Resource Actions” while also enforcing return-to-office (RTO) mandates and co-location requirements to encourage voluntary attrition.
Employees have reportedly been dismissed in multiple regions, including Raleigh, North Carolina; New York City and State; Dallas, Texas; and California. These layoffs follow last week’s reported cuts within IBM’s Marketing and Communications division, which were disclosed in an internal meeting led by Senior Vice President Jonathan Adashek.
Beyond these structured layoffs, individual employees from other departments have been informed of their termination by their managers, further reinforcing the widespread nature of the job cuts.
IBM insiders suggest that these workforce reductions align with the company’s broader strategy of shifting jobs offshore, particularly to India. One source noted that the company has significantly more job openings in India than in the U.S., highlighting IBM’s long-standing efforts to relocate its workforce to lower-cost regions.
“This is a resource action,” said one source familiar with the Cloud Classic layoffs. “IBM has been making a lot of changes to shift employment to India as much as possible.”
In addition to the Cloud Classic layoffs, employees within IBM’s broader Cloud division have also been affected, with some estimating that approximately 10% of that group has been let go.
Those who have retained their positions face increasing pressure to return to IBM offices. Sources indicate that management is tracking office attendance via badge swipes, with exemptions for remote work granted only for medical reasons. Middle managers have reportedly been discouraging these exemptions, creating further dissatisfaction among employees.
The layoffs come at a time when IBM CEO Arvind Krishna has received a 23% salary increase, bringing his total compensation to $25 million. The pay raise has sparked frustration among employees, especially as the company continues to downsize its workforce and enforce stringent RTO policies.
IBM’s ongoing restructuring reflects its evolving business strategy, which includes acquisitions and a shift in focus toward AI and automation. At its February Investor Day, the company announced it would no longer report revenue separately for its Hybrid Platform & Solutions and Security segments—typically a move made when business units are underperforming.
IBM has also positioned AI as a key area of future growth, though recent comments by CEO Arvind Krishna at SXSW have drawn skepticism. While Krishna stated that AI will boost programmer productivity rather than replace jobs, employees remain wary given the company’s history of outsourcing roles and reducing headcount.
IBM has a long track record of restructuring its workforce, and sources suggest that the current wave of layoffs may not be the last. As the company continues to invest in AI and acquisitions while shifting labor to lower-cost regions, additional job cuts could be on the horizon.
For now, employees at IBM face uncertainty, with many questioning the company’s long-term workforce strategy and leadership decisions.