News

IBM Reorg: Up To 13,000 Job Cuts, Mostly in EU

IBM announced late Wednesday a restructuring that will result in layoffs of as many as 13,000 workers, primarily in Europe, and a pre-tax charge of up to $1.7 billion.

The main goal of the reorganization is “to improve the company's efficiencies, strengthen its client-facing operations and capture opportunities in high-growth markets,” according to a corporate statement.

Largely due to slowness in European markets, IBM plans to move employees into more direct client relationship roles and eliminate what it refers to as the “traditional pan-European management layer” that, to this point, has been necessary for coordinating activities across countries’ borders.

“As a result, IBM will create a number of smaller, more flexible local operating units in Europe to increase direct client contact,” according to the company’s statement. “On a worldwide basis, IBM plans to improve the efficiency of its services operations by consolidating much of the service delivery workload into fewer locations by using standard job roles, processes and tools.”

The result for workers will be the elimination of 10,000 to 13,000 jobs, while for shareholders, it will add up to a pre-tax charge during the second quarter of between $1.3 billion and $1.7 billion. Bottom line benefits to the company should begin to accrue during the second half, the company says.

Further details of the restructuring are due to be revealed Thursday morning in a conference call with senior vice president and CFO Mark Loughridge.

About the Author

Stuart J. Johnston has covered technology, especially Microsoft, since February 1988 for InfoWorld, Computerworld, Information Week, and PC World, as well as for Enterprise Developer, XML & Web Services, and .NET magazines.

Featured

  • Microsoft Offers Support Extensions for Exchange 2016 and 2019

    Microsoft has introduced a paid Extended Security Update (ESU) program for on-premises Exchange Server 2016 and 2019, offering a crucial safety cushion as both versions near their Oct. 14, 2025 end-of-support date.

  • An image of planes flying around a globe

    2025 Microsoft Conference Calendar: For Partners, IT Pros and Developers

    Here's your guide to all the IT training sessions, partner meet-ups and annual Microsoft conferences you won't want to miss.

  • Notebook

    Microsoft Centers AI, Security and Partner Dogfooding at MCAPS

    Microsoft's second annual MCAPS for Partners event took place Tuesday, delivering a volley of updates and directives for its partners for fiscal 2026.

  • Microsoft Layoffs: AI Is the Obvious Elephant in the Room

    As Microsoft doubles down on an $80 billion bet on AI this fiscal year, its workforce reductions are drawing scrutiny over whether AI's ascent is quietly reshaping its human capital strategy, even as official messaging avoids drawing a direct line.