IBM’s Workforce Transition and Layoffs
Ongoing IBM’s Layoffs in the United States are reportedly more extensive than previously disclosed, with a significant portion of these roles shifting to India. Reports from current and former employees indicate that layoffs have intensified, contradicting official figures. Data from IBM’s careers site supports these claims, showing a dramatic increase in job postings in India—from 173 listings in January 2024 to nearly 3,866 by early 2025. Meanwhile, open positions in the US remain stagnant, with skepticism about whether they will be filled domestically.
Employees impacted by these layoffs describe a troubling trend. Several have reported being asked to train new hires in India before receiving layoff notices, a process IBM refers to as a “resource action” (RA). Despite IBM listing open positions in the US, many affected employees allege that internal transfers are being denied unless they involve positions based in India. One employee noted that every transfer inquiry resulted in the same response: “I can only hire in India.”
IBM’s shift toward India is not a new development. In 2017, it was informally dubbed “Indian Business Machines” due to its growing reliance on offshore talent. However, the latest round of IBM’s layoffs, rumored to be in the thousands, has amplified concerns about the company’s strategic focus. The increasing number of job openings in India has led to accusations of favoritism, with experienced US employees being replaced by less experienced hires trained within a short timeframe.
Impact on Quality and Workplace Culture
The transition of jobs to India has sparked concerns over the quality of IBM’s services and products. Former employees claim that entire departments, including quality assurance (QA), have been outsourced, leading to a decline in performance. Many experienced professionals with over a decade of expertise were replaced by hires trained in just six months. This shift reportedly caused daily operational issues, highlighting the risks associated with IBM’s workforce strategy.
Additionally, IBM’s restructuring has affected workplace dynamics. Some employees describe a work environment increasingly centered around India-based teams, often at the expense of efficiency. Meetings were rescheduled to accommodate time zones in India, disrupting workflows for local teams. One former employee shared that a key project suffered setbacks due to the mandatory inclusion of team members from India, many of whom contributed minimally. “At this point, IBM might as well move its headquarters to India,” the employee remarked, criticizing the company’s priorities.
Reports of IBM’s layoffs are not limited to the US; job cuts have also been noted in Canada and various other regions. Despite management’s push for business growth, affected employees express skepticism about the company’s long-term strategy. Many believe that IBM’s focus on shifting jobs overseas, rather than investing in its US workforce, could have lasting repercussions on innovation and service quality.
IBM’s Response and Future Outlook
IBM has remained largely silent on these allegations. In early 2024, the company disclosed a planned workforce rebalancing, stating that layoffs would represent a “very low single-digit percentage” of its global workforce. However, figures from IBM’s 2024 Annual Report reveal a significant reduction of nearly 12,000 jobs that year, with approximately 3,000 positions added in India. This trend is expected to continue in 2025, with further reductions likely to surpass initial estimates of 9,000 job cuts.
IBM’s Chief Financial Officer, James Kavanaugh, previously stated that the company anticipates a workforce restructuring “consistent with prior years.” However, given the scale of recent IBM’s layoffs, analysts predict deeper cuts than IBM has publicly acknowledged. As the company continues shifting resources offshore, questions remain about the long-term impact on its global workforce and competitive positioning.
With uncertainty looming, IBM’s employees and industry observers alike are watching closely to see whether the company’s cost-cutting measures will ultimately strengthen or weaken its market position in the years ahead.
