IBM Planning To Replace 7,800 Jobs, Reason is AI

IBM, one of the largest and renowned technology companies in the world, is set to pause its hiring process and replace 7,800 jobs with artificial intelligence (AI) in the coming years. 

The decision, announced by CEO Arvind Krishna, comes as the company aims to cut costs and increase efficiency.

Krishna explained that over the next five years, around 30% of IBM’s workforce, or 105,000 employees, will retire, leave the company, or be replaced with automation. He believes that this shift towards AI will enable IBM to better compete with its rivals in the tech industry.

The jobs set to be replaced by AI are predominantly back-office positions, such as human resources, finance, and procurement roles. These positions require repetitive and administrative tasks, which can be done more efficiently and accurately by machines.

What’s the Progress?

IBM has been investing heavily in AI technology over the past few years, with the aim of developing solutions that can help businesses automate their operations. The company’s flagship AI platform, Watson, has been used by a variety of industries, including healthcare and finance, to streamline their operations.

Despite the benefits of AI, the move to replace jobs with machines has drawn criticism from some quarters. Labor unions and workers’ rights groups have expressed concern that the shift towards automation will lead to widespread job losses and leave workers without adequate support.

The CEO, Arvind Krishna acknowledged these concerns, stating that IBM will work to retrain and redeploy employees whose jobs are being replaced by AI. That’s great consideration. The company plans to offer training programs and support to help workers transition into new roles within the company or in other industries.

The decision to pause hiring and replace jobs with AI is part of IBM’s broader cost-cutting strategy. The company has been under pressure to reduce expenses and boost profits, as it faces increased competition from newer, more agile rivals in the tech industry.

What to Expect?

The move towards automation is not unique to IBM, with many other companies also exploring the use of AI to improve efficiency and reduce costs. However, the scale of IBM’s job replacement program is significant and underscores the growing role that AI is playing in the workplace.

IBM’s decision to pause hiring and replace jobs with AI reflects the increasing importance of automation in the workplace. While the move has drawn criticism from some quarters, it is likely to be a trend that we will see more of in the coming years, as businesses look to streamline their operations and cut costs.