IBM plans to cut jobs this quarter, affecting a “low single-digit percentage” of its roughly 270,000 employees worldwide—likely translating to several thousand layoffs. The move is part of CEO Arvind Krishna’s strategy to refocus the company on its higher-margin software and AI-driven cloud services, particularly through its Red Hat division.

The decision follows signs of slowing growth in IBM’s cloud software business, which has worried investors despite the company’s strong stock performance—up over 35% in 2024 before dipping 2% after the announcement. IBM emphasized the cuts are part of regular workforce “rebalancing” to align with strategic priorities.

While some U.S. roles will be affected, IBM expects overall domestic employment to remain stable. For Canada and other markets, the announcement reflects a broader global trend: technology companies are restructuring and cutting jobs as they pivot toward AI integration and efficiency, even amid growing demand for digital and cloud services. This signals a competitive, transitional moment in the North American tech job market, where AI expertise is becoming increasingly valuable.

If you’ve recently been laid off, here are some important steps to take:

• Apply for Employment Insurance (EI) right away.

• Check with your employer about any severance pay or outstanding compensation you may be owed.

• Look into retraining or educational programs—many provinces have new funding to help workers transition into new careers.

• Consult an employment lawyer. They can explain your rights, outline your options, and ensure you receive the full support and compensation you’re entitled to.

Have you been laid off by IMB in Canada? Contact our employment lawyers today. Our legal team offers a free consultation and works on a contingency basis—there are no fees unless you win your case.

Reuters’ original article, “IBM to cut thousands of jobs in fourth quarter amid software focus” was published in Reuters on November 4, 2025. Reuters

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