Prime Highlights
- IBM has laid off about 8,000 employees, mostly from its HR section, with AI automation taking over manual tasks.
- The total workforce of the company has actually grown, with new hires in development, marketing, and sales roles.
Key Facts
- AI agents have already taken over about 200 HR jobs, taking on administrative and support roles.
- IBM is at the same time advancing advanced AI tools that are interoperable with top technology platforms.
Key Background
In a historic step mirroring the increasing influence of artificial intelligence on corporate models, IBM recently went ahead with laying off around 8,000 employees with most of them being part of its Human Resources (HR) team. The move is a consequence of the company’s shift towards AI-driven automation for the process-oriented and routine jobs.
Computer systems have already displaced about 200 HR positions, whose function is to answer employee questions, handle paperwork, and process HR information with little human intervention. This trend has assisted IBM in cutting operating expenses by a large margin while increasing efficiency and pace in internal operations.
CEO Arvind Krishna explained that this restructuring is not indicative of a company-wide decrease in IBM’s employee base. Rather, the company recruited personnel in strategic business areas, putting capital into roles that involve creativity, innovation, and interpersonal skills—specifically software development, marketing, and sales. This shift in personnel falls within IBM’s bigger picture of being an enterprise AI leader.
Chief People Officer Nickle LaMoreaux added that “few jobs will be fully eliminated” due to AI. Rather, the mundane aspects of work will be automated so that employees can concentrate on decision-making, problem-solving, and feedback to strategy. The message from the company is definite: AI will augment, not fully replace, human work—at least in more valuable positions.
Aside from inner transformation, IBM is broadening its artificial intelligence services, such as the advanced agent-creating capabilities that allow top platforms like OpenAI, Microsoft, and Amazon. These technologies, which were highlighted in IBM’s recent Think conference, indicate that the company is not just using AI in its own space but also urging the same throughout the industry.
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