/dq/media/agency_attachments/UPxQAOdkwhCk8EYzqyvs.png)
Follow Us/dq/media/media_files/2025/03/26/pH8UCZfNQl38l8qG0Tbj.jpg)
The US is IBM’s biggest market, and it is making major workforce changes in 2024, laying off around 9,000 employees. The Register report states that this is part of IBM's restructuring strategy, and many of these jobs may be relocated to India. The employees affected are spread across several divisions including IBM’s Cloud Classic division, which was formed from the acquisition of SoftLayer. It is estimated that 25 percent of that team is affected. This layoff is a blow to employees in the US but also an opportunity for India’s tech workforce.
IBM Layoff: Cost efficiency is the main reason
This downsizing is part of IBM’s years of moving jobs to India. Cost efficiency is the main reason: India has a large number of skilled workers who earn less than their US counterparts. Bengaluru, Hyderabad, Pune and Chennai have talented professionals in cloud computing, AI and cybersecurity that IBM needs. It was expected, even IBM’s CEO Arvind Krishna has said that the company is expanding in India.
The uncertainty among workers who will be laid off by IBM in the US following its recent decision to cut 9,000 employees is understandable. But this is also expected to help India’s tech workforce, as IBM is moving many of these roles to its offices in India. This is in line with IBM’s long term strategy to expand in India where there is skilled talent available at lower costs.
Why IBM Layoff Could Boost India’s IT Sector
This downsizing is part of a trend that IBM has been moving jobs to India for years. The main reason is cost efficiency: India has a large number of skilled workers who earn less than their US counterparts. There are cities like Bengaluru, Hyderabad, Pune and Chennai that have talented professionals in cloud computing, AI and cybersecurity, which IBM needs. So this shift was expected, even IBM’s CEO Arvind Krishna has mentioned that the company is planning to expand in India.
IBM Layoff: Expected Job Opportunities in India
IBM’s focus will likely be on cloud computing, AI, cybersecurity, and enterprise IT systems. Here are some key areas where new roles may emerge:
● IBM’s Cloud Classic division is impacted in the US and similar roles will be moved to India. Those engineers who specialize in hybrid cloud and IT infrastructure will be in demand.
● And we expect that as the percentage of AI bucks that IAaaii and machine learning get closer to the market, IBM is going to employ more engineers and data scientists in India.
● Digital Transformation – With digital transformation accelerating, IBM will be heavily reliant on cybersecurity professionals to help run the business.
● Software Development & Support – Core IT operations like software development, system maintenance and technical support are expected to grow in India.
● IT consulting and enterprise solutions – IBM’s business strategy is to provide IT consulting and enterprise solutions which offer jobs to consultants and sales professionals.
Read More:
Zomato Layoffs: Sacks 600 employees as AI takes over customer service roles
Citigroup Layoffs 30% of IT Contractors: All Details