AI Axe Falls On IBM Employees: Tech Giant Cuts 8,000 Jobs, Automates Parts of HR Dept
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IBM CEO Arvind Krishna has openly discussed the company's increasing reliance on automation.
IBM Layoffs 2025: IBM has recently laid off around 8,000 employees, focusing mainly on its Human Resources (HR) department, accordingly to several media reports. This action is part of a larger strategy by the US-based tech giant to incorporate artificial intelligence (AI) into its operations, especially in back-office roles.
Earlier this month, IBM replaced about 200 HR positions with AI agents capable of performing repetitive administrative tasks like answering employee queries, processing paperwork, and organizing HR data. These AI-driven agents require minimal human oversight and are designed to enhance efficiency while cutting costs.
advetisement
A Shift In Workforce Management
This decision represents a major change in IBM's approach to managing its workforce. IBM CEO Arvind Krishna has openly discussed the company's increasing reliance on automation. In a recent interview, he mentioned that AI is being adopted 'very aggressively" to streamline business processes. Despite job cuts in some areas, he noted that IBM's overall headcount has actually risen, as savings from automation are being redirected to 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. 'It gives you more investment to put into other areas."
Modernizing Over Downsizing
Krishna emphasized that IBM's goal is not merely to reduce workforce numbers but to modernize it. The company aims to focus on roles that require human skills such as creativity, strategic thinking, and people management, while administrative and process-oriented roles are increasingly susceptible to automation.
IBM's Chief Human Resources Officer, Nickle LaMoreaux, echoed this sentiment, stating that AI is not expected to fully replace most jobs. 'Very few roles will be completely replaced," she said. 'AI will take over the repetitive parts of the job, freeing up employees to focus on areas that need human judgment and decision-making."
Promoting AI Capabilities
While undergoing internal restructuring, IBM is also promoting its AI expertise to external clients. At its annual Think conference this month, the company introduced a suite of new tools to help businesses build and deploy their own AI agents, compatible with platforms from OpenAI, Microsoft, and Amazon.
Industry Trends
IBM's move reflects a broader industry trend. For instance, language learning platform Duolingo has recently announced it is replacing human contractors with AI. Similarly, Shopify CEO Tobias Lütke has implemented new policies requiring teams to justify new hires by showing that AI cannot perform the job instead.
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