ARMONK, New York: IBM said this week it will lay off employees in the fourth quarter as part of a restructuring tied to its shift toward high-margin software and artificial intelligence services, a move that could affect several thousand workers worldwide.

"We routinely review our workforce ... and at times rebalance accordingly," the company said in a statement. "In the fourth quarter, we are executing an action that will impact a low single-digit percentage of our global workforce."

The company employed about 270,000 people globally as of the end of 2024. The planned cuts would therefore represent several thousand positions, although IBM did not specify how many.

Under CEO Arvind Krishna, IBM has been focusing on expanding its software and cloud businesses, led by its Red Hat division, as clients increase spending on AI and hybrid cloud solutions. In recent years, the company has divested lower-margin operations to streamline its portfolio and improve profitability.