The layoffs are part of a broader corporate restructuring plan, with reports indicating that nearly 25% of the workforce in the Cloud Classic segment could be impacted. Employees in consulting, corporate social responsibility, cloud infrastructure, and internal IT systems are among those affected.
This move aligns with IBM's ongoing strategy to shift jobs to India, where operational costs are lower and the talent pool is abundant. The company currently has more job openings in India than in the U.S., reflecting its focus on leveraging India's skilled workforce.