Amid Layoffs in US, IBM To Shift Hiring to India

IBM is reportedly laying off nearly 9,000 employees across multiple locations in the United States, including California, New York, Texas, and North Carolina. A significant portion of these layoffs is affecting the Cloud Classic division, with IBM shifting employment to India as part of its restructuring strategy.

Some laid-off employees were reportedly asked to train their replacements in India before leaving.

The company’s CEO, Arvind Krishna, has previously emphasized a shift in labor focus to India, reinforcing this trend.

A major portion of these layoffs is affecting the Cloud Classic division, with IBM shifting employment to India as part of its cost-cutting strategy.

IBM has been expanding its hiring in India with more job openings listed than in the U.S. The company has reportedly instructed some laid-off employees to train their replacements in India before leaving. This move aligns with IBM’s broader workforce strategy, which emphasizes cost-cutting and labor realignment.

IBM has been expanding its hiring in India listing 173 open positions since January and 2,946 openings since November last year.

Additionally, IBM has introduced a return-to-office mandate, requiring employees to work on-site at least three days a week starting in late April. Badge swipes are being monitored, and medical exemptions are reportedly discouraged.

The company is shifting jobs to India, where it can leverage a large pool of skilled professionals at lower costs. This move aligns with IBM’s long-term focus on cloud computing, AI, cybersecurity, and enterprise IT solutions.

This move aligns with broader trends in the tech industry, where companies like Meta and Google have also been shifting jobs to India.