IBM, one of the largest technology companies in the world, has announced a hiring freeze and the possible replacement of 7,800 jobs with artificial intelligence (AI). The move is part of the company’s efforts to automate tasks that can be handled more efficiently by machines and is expected to affect non-customer-facing positions such as human resources.
IBM Announcement to Replace 7,800 Jobs With Artificial Intelligence
Arvind Krishna, CEO of IBM, said that mundane tasks like providing employment verification letters or moving employees between departments will likely be fully automated. He added that specific HR duties, like assessing the productivity and composition of the workforce, are less likely to be replaced by AI technology in the next ten years.
This news comes after IBM announced plans earlier this year to reduce its workforce by cutting around 5,000 jobs upon completion. However, Krishna said that the company had hired approximately 7,000 new employees in the first quarter, leading to an increase in its workforce. Despite this, he anticipates that approximately 30% of non-customer-facing positions could be automated within the next five years, which could lead to the loss of approximately 7,800 jobs.
While IBM has not implemented a broad policy to pause hiring, it is being selective in its hiring with a focus on revenue-generating roles. The company spokesperson stated that IBM is actively recruiting for thousands of positions right now, but it is being deliberate and thoughtful in its hiring process.
This decision by IBM is not unique as many companies around the world are also looking to automate tasks and reduce their workforce. In January this year, IBM announced layoffs after it failed to meet its cash targets, resulting in 3,900 job cuts as a result of asset sales and flat fourth-quarter revenue. Additionally, Morgan Stanley is reportedly planning 3,000 job cuts from its global workforce, amounting to approximately 5% of its workforce.
The rise of AI and automation in the workplace is expected to continue, and it is likely that more companies will follow in IBM’s footsteps. While it may lead to job losses, it will also create new opportunities for people with the necessary skills to develop and manage these technologies.
In conclusion, IBM’s decision to temporarily halt recruitment for positions that can be automated using AI and automation technology is expected to affect non-customer-facing positions such as human resources. While IBM is not implementing a broad policy to pause hiring, it is being selective in its hiring process with a focus on revenue-generating roles. The rise of AI and automation in the workplace is expected to continue, and it is likely that more companies will follow in IBM’s footsteps. While it may lead to job losses, it will also create new opportunities for people with the necessary skills to develop and manage these technologies.