IBM to cut thousands of jobs as Red Hat growth slows
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IBM to cut thousands of jobs as Red Hat growth slows
"IBM will cut a "low single-digit percentage" of its 270,000-strong workforce in the fourth quarter, the company said Tuesday. The reduction could affect between 2,700 and 5,400 employees if there is an employee reduction of just 1% or 2%. "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," an IBM spokesperson said."
"IBM said that US employment will remain "flat year over year," suggesting the company will backfill domestic roles in other geographies. The company currently lists 2,466 job openings in India compared to 370 in the US, according to its Careers portal. This marks IBM's third major workforce reduction since September 2024, when the company eliminated an estimated 8,000 to 10,000 positions. Another 5,000 to 7,000 positions were cut in March 2025."
IBM will cut a low single-digit percentage of its roughly 270,000-strong workforce in the fourth quarter, potentially removing 2,700–5,400 employees. US headcount will remain flat year over year while hiring appears concentrated in other geographies, with far more job openings listed in India than in the US. This is the third major reduction since September 2024 after earlier cuts of about 8,000–10,000 and 5,000–7,000. The timing follows slowing growth at Red Hat, where hybrid cloud growth decelerated to 14% from 16%, below the 16% expectation and raising concerns about execution and delivery strain.
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