IBM is set to lay off approximately 9,000 employees in the United States as part of a significant corporate restructuring.This move primarily affects the company’s Cloud Classic division, with nearly 25% of its workforce facing redundancy.The restructuring is part of IBM’s strategy to optimize operations and reduce costs.
Impact on India Operations
While the layoffs are concentrated in the U.S., IBM’s restructuring is expected to benefit its operations in India. The company has been gradually shifting roles to India, leveraging the country’s large talent pool and lower operating costs.IBM currently has more job openings in India than in the U.S., indicating a strategic focus on expanding its workforce in the region.
This shift aligns with IBM CEO Arvind Krishna’s emphasis on focusing labor efforts in India. The company has a significant presence in Indian cities like Bengaluru, Hyderabad, Pune, and Chennai, where it is expected to expand further.
Broader Industry Trends
IBM’s decision reflects a broader trend among major U.S. companies to restructure and optimize operations. In 2024, several corporations across various industries, including technology, media, finance, manufacturing, and retail, announced significant layoffs. Factors such as economic pressures, technological advancements, and evolving market demands have contributed to these workforce reductions.
Conclusion
IBM’s planned layoffs in the U.S. are part of a strategic restructuring aimed at optimizing operations and reducing costs.The shift of roles to India underscores the country’s growing significance in the global tech industry, offering opportunities for skilled professionals in various domains. As IBM navigates these changes, the company aims to position itself for sustained growth and competitiveness in the evolving technological landscape.
