IBM Cuts 8,000 Jobs as AI Replaces Human Workers

IBM has laid off approximately 8,000 employees, with the majority of these reductions occurring in the company’s Human Resources (HR) division. This move is part of IBM’s broader strategy to integrate artificial intelligence (AI) into its operations, automating tasks previously handled by human staff.

The company’s AI tool, AskHR, now automates 94% of routine HR tasks, such as processing pay statements and handling vacation requests. This automation has led to the replacement of several hundred HR positions.

Despite these layoffs, IBM’s overall workforce has grown. Reportedly, the company has redirected resources to hire more employees in areas like software engineering, marketing, and sales roles that require human interaction and critical thinking.

IBM CEO Arvind Krishna has indicated that up to 30% of non-customer-facing roles, including those in HR, could be replaced by AI and automation over the next five years.

Earlier, IBM announced that it was going to invest about $150 billion in the U.S.

To let you know: Microsoft also laid off about 6,000, which represents 3% of its total headcount, and that too because Microsoft is relying heavily on AI.

This development reflects a broader trend in the tech industry, where companies are increasingly adopting AI to improve efficiency and reduce costs. As AI continues to evolve in more than one way, its impact on employment and organizational structures is expected to grow.

While some of my colleagues still ask a common question, now looking at IBM, I can confidently say that “Yes, HR can be replaced by Artificial Intelligence for sure”.