IBM is reportedly preparing to layoffs of nearly 9,000 employees across its US offices in what appears to be a major corporate restructuring. While the company has yet to officially confirm the exact figures, reports suggest that the Cloud Classic division—which originated from IBM’s 2013 acquisition of SoftLayer—will be among the hardest hit, with almost a quarter of its workforce facing redundancy.
The layoffs are expected to impact employees across consulting, corporate social responsibility initiatives, cloud infrastructure, sales, and internal IT teams working under IBM’s Chief Information Officer. As this restructuring unfolds in the US, attention is now shifting to IBM’s India operations, which could see both job creation and strategic workforce shifts as part of the company’s cost-cutting measures.
A Workforce Shift to India?
One of the underlying reasons for the layoffs in IBM’s Cloud Classic division appears to be the company’s broader shift in labor strategy. Reports indicate that IBM has been steadily moving jobs to India, where operational costs are lower, and the talent pool is deep in cloud computing, IT infrastructure, and software development.
The Register, which first reported the layoffs, noted that IBM currently has more job openings in India than in the US, reinforcing speculation that the restructuring will lead to an expansion of roles in India rather than a simple downsizing of its overall workforce. IBM’s CEO, Arvind Krishna, has previously highlighted the company’s labor focus on India, suggesting that the country remains a key pillar of IBM’s long-term strategy.
Potential Impact on IBM India Operations
While job cuts in the US signal a strategic realignment, IBM’s India operations are likely to see a reshuffling of roles and increased hiring in targeted areas. Cloud computing, infrastructure management, sales, and consulting could emerge as the key domains where IBM expands its footprint in India.
This shift aligns with IBM’s broader industry move, where global IT firms are doubling down on India’s workforce capabilities, particularly in hybrid cloud, AI-driven IT solutions, and managed services. IBM already operates major centers in Bengaluru, Pune, Hyderabad, Chennai, and Gurgaon, and this restructuring could further strengthen its reliance on India’s skilled labor market.
Workplace Policy Changes for IBM’s US Employees
In addition to the job cuts, IBM is revising its workplace policies for employees in the US. Those spared from layoffs are now required to return to office for at least three days a week starting in late April. Reports indicate that badge swipes will be monitored to enforce compliance. Although medical exemptions are technically allowed, there are claims that management has been discouraging such requests.
This policy shift reflects a larger trend in the tech industry, where companies are pushing for a return to office culture despite initial enthusiasm for remote work. Whether similar workplace changes will be introduced in IBM India remains to be seen, but industry experts suggest that India’s flexible work culture may see fewer restrictions compared to IBM’s US offices.
Also read: India’s Job Market Grows 41% in Feb: foundit
Restructuring Without Public Clarity
IBM has not publicly disclosed the exact number of job losses or the full scale of its workforce restructuring, but insider sources suggest that this move is part of a larger global workforce realignment. The cost-cutting measures reflect the pressures IBM faces in remaining competitive in cloud and AI-driven enterprise solutions, where rivals like Microsoft, AWS, and Google Cloud continue to gain ground.
As IBM navigates these changes, India’s role as a global IT hub is becoming increasingly central to its operations. The company’s shifting employment strategy could present opportunities for India’s workforce, but questions remain about the long-term implications for stability and job security in the face of rapid restructuring.
For IBM employees in both the US and India, the coming months will be critical in understanding the true impact of these changes, as the company recalibrates its business strategy in an evolving IT landscape.
