IBM is set to cut jobs this quarter as it focuses more on high-margin software. The move may affect thousands of employees, with a low single-digit percentage of the global workforce impacted. CEO Arvind Krishna is emphasizing software and AI technology through the “Red Hat” division to capitalize on cloud services demand.

Despite IBM’s cloud software growth slowdown, shares have risen over 35% this year. The company employed about 270,000 workers in 2024, with potential job reductions affecting some U.S. workers. Bloomberg News first reported details on the layoffs, sparking investor concerns about IBM’s cloud services prospects.

Read more at Yahoo Finance: IBM to cut thousands of jobs in fourth quarter amid software focus