IBM, an American tech company has recently layoff a number of employees, and it is reported that the company is expects to suspend a number of roles at the organisation. The move has been planned to replace jobs with artificial intelligence (AI) in the upcoming years. The tech company has also stated that it will be taking harsh measures to limit expenses of IBM. The company in January 2023 announced its plan of laying off around 4,000 workers.
It was Bloomberg’s report which stated that Arvind Krishna, CEO of IBM has suggested that some of the back-office functions could be replaced by AI in the upcoming five years. He further added that human resources could be replaced by AI easily.
The statement made sense and surfaced when a number of tech companies, including Meta, Amazon, and more laid off staff from various departments and planned to use artificial intelligence to run in organisations.
In an interview, Arvind Krishna said, "I could easily see 30 per cent of that getting replaced by AI and automation over a five-year period." IBM has roughly 26,000 workers, therefore, nearly 7,800 jobs could be replaced by AI in the coming years.
By the time of writing, the stats have stated that the company has around 260,000 staff and it is continuously hiring for software development and customer-facing roles. The CEO further said that despite the cuts, the company got about 7,000 people in the first quarter of the year 2023. IBM layoff earlier this year, when the company announced its plan to spin off and sale of two business units.
Krishna has been managing the century-old company since 2020 and has been witnessing constant lower growth in the businesses it has been felt by his statement that he may consider selling its weather unit soon (timeline unspecified). James Kavanaugh, Chief Financial Officer of IBM had also said that the new productivity and efficiency steps are expected to drive around 2 billion USD per year in savings by the end of 2024.
Musk was one of those entrepreneurs who brought the open letter which demanded a pause on AI developments for the rest of 2023. On the other hand, Sundar Pichai, Google’s CEO and Satya Nadella, Microsoft’s CEO has said that AI would get rid of some jobs which will not make sense at the moment (in 2023), but it will eventually help the employees to save more time.
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