IBM Plans to Replace 7,800 Jobs with AI, Pauses Hiring in Back-Office Functions
IBM CEO Arvind Krishna has announced plans to halt hiring for back-office functions, such as human resources, which could be replaced with artificial intelligence (AI) over the next five years. This would affect around 26,000 workers, and up to 30% of these roles could be replaced by AI and automation. The move is part of the company's larger workforce strategy in response to the rapid advancements of AI technology. While some functions, such as evaluating workforce composition and productivity, may not be replaced over the next decade, more mundane tasks, such as providing employment verification letters or moving employees between departments, are likely to be fully automated. Krishna has worked to focus the century-old company around software and services such as hybrid cloud since taking over as CEO in 2020. He has divested lower-growth businesses like managed infrastructure unit Kyndryl Inc. and part of the Watson Health business, and IBM is currently considering selling its ...