IBM cuts 8,000 jobs as AI-driven automation transforms HR operations

Approximately 8,000 IBM workers have apparently been let go, with the Human Resources (HR) division accounting for the majority of these layoffs. The action is a part of the US tech giant’s larger endeavor to incorporate artificial intelligence (AI) into its operations, namely in back-office tasks.

Earlier this month, IBM replaced about 200 HR positions with AI bots that could do routine administrative duties including organizing HR data, processing paperwork, and answering employee inquiries. These software-driven agents are intended to increase productivity while cutting expenses, and they require little human oversight.

The choice marks a substantial change in the way the business handles its employees. Arvind Krishna, the CEO of IBM, has been outspoken about the company’s increasing automation. He said in a recent interview that AI is being used “very aggressively” to optimize business processes. He emphasized that although there have been reductions in certain departments, IBM has actually seen an increase in staff overall as savings from automation are being reinvested in other areas like software development, marketing, and sales.

“While we have done a huge amount of work inside IBM on leveraging AI and automation on certain enterprise workflows, our total employment has actually gone up,” Krishna said. “It gives you more investment to put into other areas.”

Krishna said that IBM is modernizing rather than merely laying off employees to decrease costs. The organization is restructuring its personnel to concentrate on positions requiring human intelligence, such strategic thinking, people management, and creativity. On the other hand, positions that rely on administrative and process-driven tasks are becoming more susceptible to automation.

IBM’s Chief Human Resources Officer, Nickle LaMoreaux, reinforced this view, stating that AI is not expected to fully replace most jobs. “Very few roles will be completely replaced,” she said. “AI will take over the repetitive parts of the job, freeing up employees to focus on areas that need human judgment and decision-making.”

Interestingly, while undergoing internal restructuring, IBM is also promoting its AI capabilities to external clients. At its annual Think conference held this month, the company unveiled a suite of new tools to help businesses build and deploy their own AI agents, compatible with platforms from OpenAI, Microsoft, and Amazon.

IBM’s shift mirrors a broader industry trend. Language learning platform Duolingo recently announced that it is phasing out human contractors in favour of AI. Similarly, Shopify CEO Tobias Lütke has introduced new policies requiring teams to justify new hires by demonstrating that AI cannot do the job instead.