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BUSINESS
The decision comes shortly after the company replaced around 200 HR positions with artificial intelligence (AI) tools. These AI agents are software programs designed to handle repetitive office tasks.
IBM has laid off around 8,000 employees, with most of the job cuts reportedly coming from the company’s Human Resources (HR) department. The decision comes shortly after IBM replaced around 200 HR positions with artificial intelligence (AI) tools. These AI agents are software programs designed to handle repetitive office tasks. They can sort data, respond to employee questions, and process paperwork—work that previously required human staff. Now, with IBM expanding its use of AI, more jobs are being phased out.
IBM CEO Arvind Krishna recently spoke about this shift. He said that automation is helping the company work more efficiently. According to him, while AI is replacing some roles, the company is using the savings to invest in areas like software development, marketing, and sales.
“While we have done a huge amount of work inside IBM on leveraging AI and automation on certain enterprise workflows, our total employment has actually gone up,” Krishna said.
In short, IBM says it's not reducing its overall workforce, but shifting focus. Roles that involve creative thinking or people skills are still needed. However, routine jobs, especially in departments like HR or administration, are at greater risk of being automated.
Nickle LaMoreaux, IBM’s Chief Human Resources Officer, said AI won’t replace all jobs. Instead, it will take over repetitive parts, allowing employees to focus on tasks that require human judgment.
Despite the layoffs, IBM is pushing forward with its AI strategy. At its annual Think conference this month, the company launched new AI services to help other businesses build and run their own AI tools. These new services work alongside platforms from OpenAI, Amazon, and Microsoft.
IBM is not alone in this trend. Other companies are also replacing workers with AI. Duolingo recently announced it will reduce the number of human contractors doing work that AI can now handle. Similarly, Shopify’s CEO told employees that before hiring anyone, they must first prove that AI cannot do the job.
As AI becomes more powerful and cost-effective, more companies are likely to follow this path—automating simple tasks to save money and improve efficiency. But for many workers, it’s becoming clear: if your job can be done by a machine, it might be next in line.