IBM to cut thousands of jobs in fourth quarter amid software focus

"In the fourth quarter we are executing an action that will impact a low single-digit percentage of our global workforce." Under CEO Arvind Krishna, IBM has doubled down on software as it looks to tap into increased spending on cloud services through its "Red Hat" division, as businesses integrate AI technology. However, IBM last month recorded a slowdown in growth in the key cloud software segment, raising alarm bells among investors betting heavily on Big Blue's ability to benefit more from booming cloud services demand.