IBM Layoffs 2025 in Canada: What’s Happening and What Employees Should Know

IBM Announces Major Layoffs Amid Global AI Expansion

On November 4, 2025, International Business Machines (IBM) confirmed a new round of global layoffs, affecting a “low single-digit percentage” of its roughly 270,000-person workforce.

According to Reuters and Bloomberg, this amounts to thousands of job cuts worldwide as IBM continues shifting toward artificial intelligence (AI) and hybrid cloud services.

While IBM has not disclosed how many Canadian roles are impacted, early reports suggest that hundreds of positions across the company’s offices in Markham, Ottawa, Montreal, Calgary, and Vancouver may be affected. According to Reddit, many employees on IBM’s Cognos team in Ottawa were impacted.

Samfiru Tumarkin LLP has already been contacted by multiple IBM employees in Canada, including Ottawa and Markham seeking legal advice about severance pay and wrongful dismissal.

Why IBM Is Cutting Jobs

IBM’s latest layoffs are part of an ongoing strategy to automate certain functions and focus on higher-margin AI-driven work.

CEO Arvind Krishna said the company’s adoption of AI “frees up employees to focus on areas that require human judgment,” but this transition has resulted in job losses in:

• Human resources and administrative roles
• Marketing and communications departments
• Cloud and infrastructure support
• Legacy software and systems teams

In 2025 alone, IBM has eliminated approximately 8,000 positions globally, according to The Register and Business Today, as part of its multi-year “workforce rebalancing” effort.

Recent IBM Layoff Waves (2023 – 2025)

IBM’s job reductions have come in several waves over the past two years, mostly tied to automation and AI expansion:

• 2025: Thousands of positions cut globally, including human-resources and administrative roles now handled by AI “agents.”
• 2024: Quiet layoffs affected senior technical and sales staff in IBM Cloud divisions.
• 2023: IBM’s Red Hat subsidiary eliminated about 4% of staff during a global restructuring.

Each phase has reinforced the company’s ongoing shift toward AI-driven operations — and continues to impact Canadian employees today.

Who’s Most at Risk in Canada?

While IBM hasn’t released official numbers for Canadian offices, the following groups are believed to be most affected:

• Corporate and professional staff in HR, marketing, and finance
• IT and software engineers in legacy or redundant business units
• Regional office employees tied to global service delivery hubs
• Contract and project-based workers with limited recall rights

This latest announcement follows years of workforce changes at IBM — but 2025 marks the largest AI-related reduction to date. For Canadian employees caught in this restructuring, the key question now is what these layoffs mean for your employment rights.

Your Rights If You’re Laid Off from IBM

If you’re a non-unionized IBM employee in Canada, you are likely owed severance pay of up to 24 months’ salary when your job is terminated — even if the company frames it as restructuring or automation.

Your employer must provide fair compensation based on Canadian common law, not just minimum provincial standards.

How Severance Pay Is Calculated

Your severance entitlement depends on several factors:

• Age – Older employees generally receive more severance
• Length of service – Long-term workers are entitled to larger packages
• Position and seniority – Higher-level roles often justify higher compensation
• Job market – Difficulty finding similar work increases entitlement

A fair package should include:

• Base salary
• Bonus or commissions
• Benefits continuation and pension contributions
• RSUs, stock options, or incentives
• Vacation pay and allowances

Can IBM Replace My Job with AI Without Paying Severance?

No. Even if your position was eliminated due to automation, you are still entitled to severance pay.
Replacing a role with AI or outsourcing it to another country does not cancel your legal rights.

If you were pressured to accept a severance package quickly, or told the layoff was temporary when it’s actually permanent, contact an employment lawyer before signing anything.

What to Do If You’ve Been Laid Off from IBM

1. Don’t sign anything immediately.
   Review your termination letter and severance offer carefully.
2. Document everything.
   Keep emails, internal memos, and HR communications.
3. Use the Severance Pay Calculator.
   Get a free, confidential estimate of what you may be owed:
   👉 SeverancePayCalculator.com
4. Seek legal advice before accepting any offer.
   An employment lawyer can help ensure your package reflects your true rights.
5. Keep records of your job search.
   This helps if your claim proceeds to negotiation or court.