IBM CEO Arvind Krishna attends the inaugural AI Insights Forum on Wednesday, September 13, 2023, at the Russell Building on Capitol Hill.
Tom Williams | Cq-roll Call Inc. | Getty Images
IBM announced Tuesday that it will lay off a percentage of its workforce this quarter.
“During the fourth quarter, we will implement actions that impact low single-digit numbers of our global workforce,” a spokesperson told CNBC. “While this may impact some US-based roles, we expect US employment to remain flat year over year.”
IBM employed 270,000 people at the end of 2024, according to its latest annual report. A 1% reduction in headcount would result in the loss of 2,700 jobs.
Other technology companies have also been slimming down recently, with executives looking for ways to improve productivity by relying more on artificial intelligence tools.
In October, Amazon Facebook’s parent company announced it would cut 14,000 corporate employees. Meta The company’s AI division announced it would cut 600 workers.
On Oct. 22, IBM reported better-than-expected earnings and met consensus as revenue from software rose 10%.
CEO Arvind Krishna has helped expand IBM’s revenue base since replacing Ginni Rometty in 2020.
The hardware, software and services provider said goodbye to some marketing and communications staff in March 2024.
Mr. Krishna told the Wall Street Journal in May that AI agents would take over about 200 human resources jobs, and the company would hire more salespeople and software developers.
WATCH: IBM wins on top and bottom lines
