IBM conducts workforce reductions at SoftLayer and Neudesic while reorganizing its cloud services operations throughout an industry-wide job decline setting which also incorporates AI implementation.

IBM has started fresh staff reductions which affect workers throughout its SoftLayer division and Neudesic division as well as its federal government services sector. Thousands of workers at IBM’s “Cloud Classic” division face termination since the division formed after the 2013 SoftLayer acquisition. The employees mainly work based in the United States.

The termination affected Cloud Classic employees at 25% rate and Cloud division employees at 10% rate as reported. Cloud engineers together with security specialists and consultants documented their departure on LinkedIn. The company has yet to provide any statement regarding layoffs in the workforce.

IBM executes leadership decisions to purchase companies that enhance its AI capabilities at the same time it implements employee reductions. The company has achieved recent acquisitions by acquiring HashiCorp, DataStax and Applications Software Technology (AST). IBM remains devoted to aggressive investment within its AI and cloud-based service sectors while conducting job cuts.

IBM revealed through a regulatory report that its CEO Arvind Krishna obtained $25.14 million in aggregate remuneration for 2024 while earning 23% more than the prior year. The company supported the pay increase with software revenue growth data reaching 9% in addition to business margin shifts.

Alongside Salesforce and HP Inc. and HPE IBM becomes one of several major tech companies which reduce their workforce numbers because economic uncertainties along with changes in the industry push for organizational restructuring.