What happens when a company lays off thousands to embrace artificial intelligence — only to realise it suddenly needs them back? That’s exactly what unfolded at IBM. In a bold attempt to streamline operations and cut costs, the tech giant handed thousands of tasks over to machines. But rather than shrinking its workforce for good, the shift sparked a surprising outcome: a hiring surge that redefined what work at IBM — and beyond — looks like.
when machines take over (and then give the jobs back)
In 2023, IBM made a move that sent ripples across the tech world : nearly 8,000 employees, mostly in HR, were shown the door. The idea was simple — let AI take over the repetitive stuff. Tasks like answering holiday queries, sorting out payroll, and other admin-heavy jobs were handed over to AskHR, a chatbot so efficient it handled 94% of HR enquiries. That translated to a jaw-dropping $3.5 billion in productivity gains.
The shift looked like textbook digital transformation. Other companies followed suit — Google, Spotify, you name it. Automate, save money, move faster. On paper, it was a clean win.
But then came the unexpected twist.
AI made room for humans — just not the same ones
Despite the mass layoffs, IBM’s headcount didn’t shrink for long. Instead, the company started hiring again. CEO Arvind Krishna publicly acknowledged that AI had opened up new opportunities — and IBM had to pivot, fast.
The budget freed up by automation was reinvested into hiring software developers, marketers, and sales experts — roles that machines simply can’t replicate. You know, the ones that rely on empathy, creativity, and a knack for solving messy, unstructured problems. It turns out that even the smartest algorithm can’t close a deal or design a compelling brand story.
Far from just replacing workers, IBM ended up transforming its entire workforce — shifting from process-driven roles to those that bring in high-value, human-centric skills.
the limits of automation (and the value of reinvention)
IBM’s story isn’t a one-off. Across industries, companies that leapt head-first into automation are finding out that AI isn’t a catch-all solution. Sure, it can handle millions of queries — AskHR alone managed 11.5 million interactions in 2024, and customer satisfaction shot up dramatically. But about 6% of questions still needed a human, especially the tricky ones with nuance or complexity.
It’s a pattern we’re seeing more often. Duolingo, for instance, swapped tutors for bots, only to bring some human guidance back in. Why? Because when it comes to emotional intelligence, judgement, or the plain unpredictability of people — AI can’t fake it.
The smart move isn’t replacing humans. It’s reshaping the workplace, using AI to do the heavy lifting and giving people room to do what they do best.
welcome to the new world of work
What IBM did was more than a cost-cutting exercise — it was a sneak peek into the future of employment. According to the World Economic Forum, automation could wipe out 92 million jobs by 2030, but it’s not all doom and gloom. In its place? A wave of new, better-paid roles — from AI trainers to ethics officers, and data interpreters who can make sense of what the machines spit out.
For employers, the challenge now is reskilling and building teams that blend tech and talent. And for workers? It’s about staying open to change, being willing to learn, and embracing the idea that your next job might not even exist yet.
IBM’s journey is a powerful reminder: technology doesn’t just change what we do — it changes who we need to be. The future of work won’t be about humans versus machines, but about finding the sweet spot where the two can thrive together.
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Joe is a passionate news writer with a keen interest in current events. With over a decade of experience in journalism, he has a knack for uncovering the stories that matter most. Joe’s insightful articles and in-depth analyses have made him a trusted voice in the industry. He thrives on staying ahead of the news curve, providing readers with timely and relevant information. Whether it’s breaking news, politics, or social issues, Joe dedication to the craft ensures that his readers are always well-informed.
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