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IBM Cuts Thousands of Jobs, Including 25% in Cloud Classic Unit

IBM

Business Honor
21 March, 2025

IBM cuts thousands of jobs across the U.S., focusing labor shift to India, especially in Cloud.

According to IBM insiders, Big Blue is cutting off thousands of employees at several locations around the United States, including 25% of the employees at the company's Cloud Classic unit.

No public announcement has been made, and it is still unclear whether these layoffs are part of a larger layoff process, teams reducing their workload on outdated products, or IBM's ongoing practice of staff reductions through "Resource Actions" (Big Blue's term for layoffs) and incentives for attrition such as co-location requirements and return-to-office policies.

The information states that employees in Dallas, Texas; California; New York City and State; and Raleigh, North Carolina, have been let go. Following last week's The Register story about firings in IBM's Marketing and Communications division, which were reportedly revealed during an internal conference call hosted by SVP Jonathan Adashek, our sources have reported additional layoffs. The supervisors have personally informed members of other groups. Teams in charge of consulting, CSR programs, cloud infrastructure solutions, sales, and employees who work on internal systems and report to IBM's CIO are reportedly among the impacted groups.

IBM announced at its February Investor Day that it will no longer report revenue for its Software group's Hybrid Platform & Solutions and Security segments separately. As business unit revenue figures are declining, which frequently occurs as products age and sales stagnate, companies usually stop disclosing information about them. When questioned about other people's assertions that jobs were being transferred abroad, our third source pointed out that IBM had a lot more available positions in India than in the US.