IBM will stop or slow hiring for roles that can be replaced by artificial intelligence (AI). These roles include back-office functions like human resources. Around 26,000 workers are in these non-customer-facing roles.IBM’s CEO expects that AI and automation could replace 30% of these roles over five years. This means around 7,800 jobs could be lost.IBM will not replace roles vacated by attrition to reduce the number of job losses.AI tools can automate customer service, write text, and generate code, which could disrupt the job market.
IBM’s CEO, Arvind Krishna, has announced a large workforce strategy in response to advancing technology. Mundane tasks like employment verification or employee movement will be fully automated. Evaluating workforce composition and productivity will likely not be replaced for the next decade.IBM still hires for software development and customer-facing roles.IBM has announced job cuts that may affect 5,000 workers. However, the company added about 7,000 people to its workforce in the first quarter. Krishna has focused IBM on software and services like hybrid cloud and divested lower-growth businesses.
IBM is considering selling its weather unit. The company exceeded profit expectations in its latest quarter due to expense management, including job cuts. New productivity and efficiency measures will save $2 billion per year by the end of 2024. Previously, CEO Arvind Krishna believed the US could avoid a recession until late 2022. Now, he sees the potential for a shallow and short recession by the end of 2023.IBM’s strong software portfolio, including Red Hat, should help it maintain steady growth despite economic concerns.
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