IBM workforce changes 2026 explained: Why is IBM cutting jobs while planning to hire more? Here are the roles it's hiring for and what it plans next

IBM layoffs and hiring 2026: For more than a century, International Business Machines has evolved with the times, reshaping itself from a data-processing firm into a major force in mainframe computing and now into hybrid cloud and artificial intelligence. That transformation hasn’t just changed its business, it has also reshaped its workforce.

IBM Strategy Shift Under CEO Arvind Krishna

Under CEO Arvind Krishna, the company made a defining move by acquiring Red Hat in 2019. This shift helped position IBM to compete in cloud and AI alongside major players like Microsoft and Google. The strategy paid off in market performance, with shares rising 40% in 2025. But internally, it meant difficult changes, including workforce reductions as the company focused on higher-growth areas.

IBM Workforce 2026: How Many Employees Does IBM Have

As of December 31, 2025, IBM employed 286,800 people globally, according to its latest annual report, reported The Street. This included 264,300 employees within IBM, 8,700 in partially owned subsidiaries, and 13,800 temporary or part-time workers. Compared to 2024, when the total workforce stood at 293,400, this reflects a reduction of about 2%. While overall numbers declined, the company slightly increased its temporary and part-time workforce.

Where Are IBM Employees Located Globally

IBM’s presence remains global, with offices and research centers spread across more than 170 countries. Its headquarters is in Armonk, New York, with key US locations in New York City, Austin, Research Triangle Park, Silicon Valley, and Rochester. Major global hubs include Tokyo, Montreal, and Munich.

IBM Layoffs and Workforce Changes Explained

The workforce shift reflects a broader transition. In late 2025, IBM confirmed it would cut a low single-digit percentage of its global workforce, describing it as part of routine adjustments.

Yet at the same time, Krishna signaled a different direction for the future, saying the company expects to hire more college graduates over the next 12 months than in recent years, as per The Street report.

Earlier changes also played a role. In 2023, about 1,900 jobs were cut as part of the spinoff of its Kyndryl business.

IBM Hiring Plans 2026: Focus on AI and Entry-Level Roles

However, looking ahead, a February 2026 report indicated IBM plans to triple entry-level hiring in the US, with roles focused on customer engagement and AI management, as per The Street report.

FAQs

Did IBM reduce its workforce recently?
Yes, the workforce declined by about 2% compared to 2024.

Why is IBM cutting jobs?
As part of its shift toward higher-growth areas like AI and cloud.