Job cuts have mainly affected the HR department, where routine work has been replaced by an AI agent. The money saved from using automation is being reinvested into other areas of the business.
The IT industry is experiencing more layoffs, with recent news highlighting significant job cuts. Microsoft recently announced layoffs affecting around 6,700 employees. Now, IBM has joined the trend by letting go of approximately 8,000 workers, mainly from its Human Resources (HR) department. This announcement comes shortly after IBM introduced AI technology to take over some tasks previously performed by human HR staff, replacing about 200 roles. As companies increasingly rely on AI to handle various jobs, many positions are being eliminated.
The company has developed software that can handle tasks such as organising information, answering questions from employees, and managing internal paperwork. These programs are meant to take care of repetitive work that doesn’t need much human decision-making.
IBM is changing how it organises its teams to include new AI technologies that will make work more efficient. These changes are showing us that AI is no longer just a helpful tool but is becoming a powerful force that changes how we work, particularly in areas like human resources.
In a recent interview, IBM’s CEO, Arvind Krishna, discussed this shift. He mentioned that AI and automation are being used to improve certain business processes and make teams work more efficiently. He also noted that, despite these changes, the total number of employees at IBM had actually gone up. This is because the money saved from using automation is being reinvested into other areas of the business, such as software development, marketing, and sales.
Nickle LaMoreaux, who is the Chief Human Resources Officer at IBM, mentioned that just because AI is becoming more common, it doesn’t mean that all jobs will disappear. She pointed out that “very few roles will be completely replaced.” Instead, AI will handle the repetitive parts of jobs, allowing employees to spend their time on tasks that require human insight and decision-making.
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