India expansion | IBM to cut 9,000 US jobs as workforce shifts abroad

IBM is rumoured to be cutting around 9,000 jobs in the US next year as part of a broader restructuring initiative, with many of the affected roles expected to be relocated to India.

The company has not officially disclosed the scale of the layoffs, but sources cited by The Register suggest that multiple divisions will be impacted, including IBM’s Cloud Classic unit, a legacy of its 2013 SoftLayer acquisition.

Nearly a quarter of that team is expected to be affected, along with employees in consulting, corporate social responsibility, cloud infrastructure, sales, and internal systems teams reporting to IBM’s Chief Information Officer.

IBM expanding India operation

Shipping roles overseas aligns with IBM’s long-term strategy of leveraging India’s lower wage scales to bring down operating costs. Sources familiar with the restructuring claim that IBM is actively working to transition as many roles as possible to India, where the company already has a strong presence in Bengaluru, Hyderabad, Pune, and Chennai.

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IBM CEO Arvind Krishna has previously highlighted the country’s importance as a global technology hub, and the latest job cuts are expected to further increase hiring efforts in India, particularly in cloud computing, infrastructure, consulting, and sales roles.

The company currently advertises more job openings in India than in the US, signalling its ongoing commitment to move many of its operations to the region.

Office attendance rules tighten

For IBM employees in the US who are not affected by the layoffs, stricter return-to-office mandates will be enforced. Staff have been informed that starting in late April, attendance will be required at least three days a week. Badge swipes are reportedly being monitored to ensure compliance, and while medical exemptions are permitted, sources claim they are being discouraged.

The company has not issued a formal statement on the restructuring, nor has it confirmed the total number of job cuts. In March 2024, employees were notified of upcoming layoffs within IBM’s marketing and communications teams, signalling the latest phase of workforce reductions.

The move comes as IBM continues to pivot its global workforce strategy, balancing cost efficiencies with maintaining a skilled talent base across multiple regions.