According to CRN, IBM is laying off thousands of employees this quarter, targeting a low single-digit percentage of its 270,000-person global workforce. The cuts are hitting architects, engineers, AI specialists, marketing professionals, and cloud technology workers, with many confirming their departures on LinkedIn. This comes just days after Amazon revealed 14,000 layoffs affecting senior program managers and software engineers. IBM reported Q3 revenue of $16.3 billion, up 7% year-over-year, with infrastructure driving 15% growth during a mainframe refresh cycle. CEO Arvind Krishna has been vocal about AI replacing human work, having already automated HR roles earlier this year.
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The AI automation reality check
Here’s the thing about Krishna’s AI enthusiasm – we’ve heard this song before. He’s basically saying AI will create more jobs than it destroys because productive companies grow faster. But look at the pattern: HR roles automated, technical roles now getting cut. The company’s growing revenue while shrinking headcount. That’s the efficiency playbook in action.
And let’s be real – when a CEO says “we’re rebalancing our workforce,” what they really mean is “we’re cutting expensive experienced people and probably hiring cheaper replacements elsewhere.” Krishna himself admitted AI agents replaced “a couple hundred” HR employees back in May. Now we’re seeing architects and engineers get the axe. The pattern is becoming uncomfortably clear.
The channel strategy shift
This is particularly interesting given IBM’s stated goal to increase channel revenue percentage in 2025. Basically, they want more business going through partners rather than direct sales. So you have to wonder – are they cutting direct roles while planning to rely more heavily on the channel? It would make strategic sense, but it’s brutal for the employees caught in the middle.
The timing is also telling. Strong quarterly results, mainframe refresh cycle driving growth – yet they’re still cutting. That suggests this isn’t about current performance. It’s about long-term structural changes to how IBM operates. They’re betting big that AI and channel partnerships can deliver the same (or better) results with fewer direct employees.
The broader tech trend
IBM isn’t alone in this. Amazon, Google, Dell, Microsoft – they’re all doing similar workforce adjustments. But IBM’s approach feels different because Krishna is so openly discussing the AI replacement angle. Most tech CEOs try to downplay that aspect. He’s practically embracing it as strategy.
So where does this leave technical professionals? Krishna says 60% of jobs are safe from AI replacement, mentioning frontline workers and creative roles. But architects and engineers? Those seem exactly like the kind of roles that could be augmented or replaced by AI tools. The question becomes: if even highly skilled technical roles aren’t safe, what exactly is?
This feels like a fundamental shift in how tech companies view their workforce. Growth no longer automatically means hiring more people. Now it’s about doing more with less – and AI is the tool making that possible. For employees, that’s a scary proposition. For shareholders? Probably music to their ears.
