IBM significantly reduces US workforce while expanding operations in India

In 2024, IBM, an American multinational technology company, underwent significant workforce reductions impacting thousands of employees while simultaneously expanding its operations in India. Reports indicate that the layoffs included around 12,000 positions, comprising a reduction of approximately 4.2 percent of its global workforce. This shift highlights a clear trend toward offshoring as the company created over 3,000 job openings within India during the same timeframe. Many employees laid off had extensive cloud expertise, which raised concerns regarding the re-hiring of individuals with lesser qualifications. The decision to prioritize hiring in India led to frustration among employees in the U.S., who expressed doubts about the future of their positions and management's commitment to the American workforce. Internal feedback indicated a strong preference for resource allocation to teams based in India, prompting speculation about a potential relocation of the company's headquarters. As of late January, IBM's actions in India suggest a continued juxtaposition between expansion on one side and domestic job losses on the other, reiterating the narrative of escalating offshoring practices in the tech industry. Current trends suggest that without changes in strategy, IBM's commitment to the U.S. market may diminish further as operational preferences shift to international locations where costs might be lower, particularly in India. The company's leadership did not comment on specific plans regarding employment levels but referenced a broader rebalancing of workforce expenses, which remains a topic of concern among stakeholders.