15,000+ US positions eliminated across four waves since September 2024, with significant offshoring to India where median tech salaries are approximately $22,000 versus $150,000 in the US. CEO Arvind Krishna has targeted 7,800 back-office roles for AI replacement. IBM has already replaced approximately 200 HR positions with AI agents and redesigned 70+ internal workflows through automation.
Start Free AI Mock InterviewIssue 01
SEPTEMBER 2024
15,000+ US jobs across four waves
IBM has executed four waves of layoffs: Wave 1 (Sep 2024, 8,000-10,000 targeting legacy infrastructure and HR), Wave 2 (Mar 2025, 5,000-7,000 in Cloud Classic and consulting), Wave 3 (Q4 2025, 2,700-8,600 cross-functional), and Wave 4 (Apr 2026, 300+ in Red Hat engineering). A significant portion represents offshoring to India rather than pure elimination. Simultaneously, IBM plans to triple entry-level US hiring in 2026 for AI-era customer-facing and AI management roles.
Issue 01
SEPTEMBER 2024
15,000+ US jobs across four waves
IBM has executed four waves of layoffs: Wave 1 (Sep 2024, 8,000-10,000 targeting legacy infrastructure and HR), Wave 2 (Mar 2025, 5,000-7,000 in Cloud Classic and consulting), Wave 3 (Q4 2025, 2,700-8,600 cross-functional), and Wave 4 (Apr 2026, 300+ in Red Hat engineering). A significant portion represents offshoring to India rather than pure elimination. Simultaneously, IBM plans to triple entry-level US hiring in 2026 for AI-era customer-facing and AI management roles.
Compensation
IBM uses 'Resource Action' layoffs governed by its Individual Separation Allowance Plan, with terms varying by tenure and location.
Standard package
ISAP base of ~1 month pay; up to ~6 months by tenure
Healthcare
COBRA continuation at the employee's own cost (not subsidized)
Notice / release
30-day RA notice; 45-day OWBPA review if 40+ in group cut
PTO
Accrued PTO generally paid out per policy
Equity / RSUs
Unvested RSUs typically forfeited; no standard acceleration
Outplacement
Minimal: self-serve online career portal only
IBM doesn't publish a single uniform severance schedule; most specifics come from employee accounts and advisory sources, so actual terms vary.
Org Impact
The cuts landed unevenly across the org chart. These groups absorbed the bulk of the roles eliminated.
Hardest hit in the Nov 2025 wave, with reported reductions around 45% of the unit.
Part of Infrastructure; the SoftLayer-based team reportedly over 50% cut.
AskHR AI agents automated ~94% of routine tasks; CEO cited a few hundred HR roles replaced.
Cut in the March 2025 US wave amid slower consulting growth and an AI/software pivot.
Affected in the ~9,000-job March 2025 US round, with roles shifting toward India.
Internal-systems teams included in the 2025 US restructuring and offshoring.
The Playbook · 30 Days
Read the separation agreement carefully before you sign — most have a 21-day window. You have time, so don't be rushed into waiving anything you don't understand.
File for unemployment in your state right away. In most states benefits are backdated to your separation date, so there's no upside to waiting.
Decide between COBRA and an ACA marketplace plan within 60 days. Marketplace plans are often cheaper than COBRA for comparable coverage.
If you're on an H-1B, start the visa-transfer clock immediately. The 60-day grace period is non-negotiable.
We also cover workforce reductions at peer companies so you can compare context and prepare cross-company. Explore more layoff trackers related to IBM.
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