IBM to cut 9,000 US jobs, potential boost for India

As jobs are phased out in the US, many of these roles are expected to be created or expanded in India, where IBM has a strong presence in key cities like Bengaluru, Hyderabad, Pune, and Chennai

In a significant restructuring move, tech major IBM is set to reduce its workforce by approximately 9,000 jobs in the United States this year. The IBM job cuts are expected to impact several divisions, including the Cloud Classic unit, which was created following the company’s acquisition of SoftLayer’s infrastructure. Reports quoting sources indicate that up to a quarter of the Cloud Classic team will be affected by the job reduction plans.

While the layoffs are focused on the US, there is growing speculation that India will benefit from these workforce changes. Insider sources reportedly suggest that IBM has been gradually moving roles to India over the past few years, and this latest restructuring is expected to continue this trend. "They’re trying to move as many roles to India as possible," one insider explained. Another former employee pointed out that IBM currently has far more job openings in India than in the US, further reinforcing the shift.

IBM’s CEO, Arvind Krishna, has previously stated that the company’s workforce strategy is increasingly focused on India, where operating costs are lower and there is an abundance of tech talent. "This is not even inside information anymore," one source remarked, signalling that the company’s commitment to India is well-known. The IBM workforce changes reflect the company’s ongoing efforts to optimize operations globally, especially in regions where labour costs are more competitive.

India to benefit from IBM global job cuts

The ongoing global job cuts may create opportunities for skilled tech professionals in India, particularly those with expertise in cloud computing, infrastructure, sales, and consulting. As jobs are phased out in the US, many of these roles are expected to be created or expanded in India, where IBM has a strong presence in key cities like Bengaluru, Hyderabad, Pune, and Chennai. This shift is part of the growing trend of companies adopting a "global delivery model," wherein teams in India handle core operations, development, support, and back-office functions.