IBM plans to eliminate 75 positions at its South San Jose campus early next year, part of a global restructuring that shifts resources toward artificial intelligence initiatives.
The permanent layoffs, disclosed in a California regulatory filing, take effect January 5. They represent a fraction of the tech giant’s workforce, which spans roughly 270,000 employees worldwide.
A company spokesperson framed the decision as routine rebalancing. “IBM’s workforce strategy is driven by having the right people with the right skills to do the work our clients require,” the representative said. “We routinely review our workforce through this lens and at times rebalance accordingly.”
The San Jose cuts arrive amid a broader wave of tech industry restructuring. Amazon, Meta, and Google have each announced layoffs in recent weeks, even as those companies invest billions in data centers and AI-powered software. As a result, workers across Silicon Valley face mounting uncertainty while employers race to build AI infrastructure.
IBM has already moved aggressively on this front. CEO Arvind Krishna disclosed earlier this year that AI systems had absorbed work previously performed by approximately 200 human-resources staffers, creating room to expand hiring in software development and sales.
Meanwhile, the company’s financial performance remains strong. IBM reported a 9% quarterly revenue increase to $16.3 billion, propelled largely by its AI consulting and software units. Despite the local reductions, leadership maintains that overall U.S. headcount should hold steady.
The South San Jose campus on Bailey Avenue will absorb the layoffs as IBM continues reshaping its labor force around emerging technology demands.
