Last year, IBM’s CEO, Arvind Krishna, mentioned the company’s plan to replace around 7,800 jobs with artificial intelligence (AI), although no specific timeline was provided. The recent layoffs align with IBM’s broader strategy of reshaping its workforce as it pivots toward AI and other advanced technologies.

In a letter addressed to the Employment Development Department (EDD) in San Francisco, IBM’s Director of Human Resources, Lawrence Sposato, confirmed that a “permanent reduction in force” was underway at the company’s San Francisco site. Public records corroborated this statement, revealing that the layoffs primarily affected senior-level employees in the U.S., with a growing number of roles being shifted to India. “This individual’s job is headed to India, we’re told, reflecting a hiring freeze in the US,” the report noted.

Many of those impacted by the job cuts are in the 50-55 age bracket with over two decades of service. Despite a history of age discrimination lawsuits, IBM continues to assert that it does not engage in systematic age-based bias. The layoffs are targeting employees at the higher end of the pay structure, with positions ranging from L7 to L9 bands, insiders report.

The company’s financial restructuring efforts, combined with its increased investment in AI, are believed to be driving these layoffs. IBM’s stock has risen by 33% this year, reflecting investor confidence in its long-term strategy, yet the human cost of this transition is becoming increasingly evident for those directly impacted.