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News18
3 days ago
- Business
- News18
AI Axe Falls On IBM Employees: Tech Giant Cuts 8,000 Jobs, Automates Parts of HR Dept
Last Updated: 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. Watch India Pakistan Breaking News on CNN News18. Stay updated with all the latest business news, including market trends, stock updates, tax, IPO, banking finance, real estate, savings and investments. Get in-depth analysis, expert opinions, and real-time updates—only on News18. Also Download the News18 App to stay updated! Location : New Delhi, India, India First Published:
India Today
5 days ago
- Business
- India Today
IBM is cutting around 8000 jobs likely because of AI, major losses in HR department
IBM has laid off around 8,000 employees, and reports suggest that most of the job cuts are coming from the company's Human Resources (HR) department. The move comes just days after IBM reportedly replaced 200 HR roles with AI agents as part of an automation push. Basically, with AI now doing the work that was once handled by humans, many roles are slowly being phased this month, IBM reportedly replaced about 200 HR positions with AI agents. Meaning: The company now has software programs that can carry out tasks like sorting information, answering employee queries, or processing internal paperwork. These agents are designed to handle repetitive tasks that don't require much human judgment. Now, with the company doubling down on AI, it seems like thousands of jobs are being CEO, Arvind Krishna, hinted at this change in a recent interview. He explained that AI and automation were being used to streamline certain enterprise processes and make teams more efficient. At the time, he said the total number of employees at IBM had actually increased, as savings from automation were being invested in other parts of the business, like software development, marketing, and '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 reportedly said. 'It gives you more investment to put into other areas.'Basically, IBM claims that it isn't shrinking across the board. Instead, it is shifting its focus. Jobs that require creativity, strategic thinking, or strong people skills, such as those in marketing or software development, are still in demand. But roles that involve routine, repetitive work, especially in back-office functions, are at higher IBM's Chief Human Resources Officer, Nickle LaMoreaux, has said that the use of AI doesn't necessarily mean all jobs will disappear. 'Very few roles will be completely replaced,' she explained. Instead, AI will take over the repetitive parts of the job, freeing up employees to focus on areas that need human judgment and despite the massive cuts, IBM continues to promote its AI tools to clients. At its annual Think conference held this month, the company launched new services to help other businesses build and run their own AI agents. These tools are designed to work alongside major platforms from OpenAI, Amazon, and trend isn't unique to IBM. Many companies around the world are experimenting with AI-powered tools to automate tasks and reduce costs. Last month, Duolingo announced that it is replacing human contractor jobs with AI. 'We'll gradually stop using (human) contractors to do work that AI can handle,' said Duolingo CEO Luis von Ahn. In April, Shopify CEO Tobias Lutke publicly shared an internal memo that basically set up a new direction for the company. According to the memo, going forward, the company CEO said that if anyone hires a human employee, they will have to first justify why AI can not do that job. 'Before asking for more headcount and resources, teams must demonstrate why they cannot get what they want done using AI,' he wrote in the memo. 'What would this area look like if autonomous AI agents were already part of the team?'
Yahoo
15-05-2025
- Business
- Yahoo
IBM (IBM) Let AI Handle HR -- and Ended Up Hiring More Humans
IBM (IBM, Financials) handed off repetitive HR work to AIand used the savings to hire more people where it counts: engineers, marketers, and sales staff. Warning! GuruFocus has detected 7 Warning Sign with NDAQ. CEO Arvind Krishna said IBM's AI tool, AskHR, now takes care of the small stuffapproving vacations, answering pay questionsthings that don't need a human touch. And while hundreds of HR jobs were phased out, IBM didn't shrink. It actually grew to 270,300 employees in 2024. The new hires? People who solve problems, think creatively, and work with customersstuff machines still can't do well. Another AI tool, AskIT, helped lighten the load on IBM's tech support team by 70%. Add it all up, and IBM says AI helped boost productivity by $3.5 billion over two years. At its Think conference, IBM showed off its next act: generative AI tools that let customers build their own AI agents in under five minutes. That part of the business is already pulling in $6 billion a year. IBM isn't alone. Klarna, Salesforce, and others are leaning on AI toobut the key difference here is how IBM is reinvesting in people, not just replacing them. See insider trades for IBM. Explore Peter Lynch chart. This article first appeared on GuruFocus.
Business Insider
14-05-2025
- Business
- Business Insider
‘AI Has Replaced a Couple Hundred HR Roles,' Says IBM CEO
IBM has started using artificial intelligence to automate parts of its human resources department, which has replaced 'a couple hundred' HR roles, according to CEO Arvind Krishna, as reported by The Wall Street Journal. Instead of cutting back overall, IBM used the money saved to hire more programmers and salespeople. Interestingly, many companies are now exploring AI agents (tools that can do things like analyze spreadsheets, write emails, and do research) to improve workplace efficiency. Protect Your Portfolio Against Market Uncertainty Krishna explained that even though IBM automated some tasks like employment verification and internal job transfers, the company's total number of employees actually increased. That's because automation allowed IBM to invest more in areas that help the business grow. The goal, he said, is to let AI handle repetitive tasks so HR teams can focus on more strategic work that adds greater value. While IBM is expanding in some roles, other companies in the tech industry are being more cautious. Indeed, AI has led some firms to slow down hiring as they evaluate how it might change the way they work. So far, large-scale job cuts from AI haven't happened, but it is affecting how companies plan for the future. At IBM's Think conference in Boston, Krishna noted that despite ongoing economic uncertainty, businesses are still increasing their AI investments to boost productivity, cut costs, and grow revenue. What Is the Target Price for IBM? Turning to Wall Street, analysts have a Moderate Buy consensus rating on IBM stock based on eight Buys, five Holds, and two Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average IBM price target of $259.92 per share implies 0.5% upside potential.
Time of India
13-05-2025
- Business
- Time of India
IBM sends HR staff packing as AI replaces them; hires more tech, sales workers: Report
IBM has used artificial intelligence to automate several human resources functions, replacing 'a couple hundred' HR roles, said chief executive officer Arvind Krishna, according to a Wall Street Journal (WSJ) report. #Operation Sindoor From crossfire to calm: What India, Pakistan Army chiefs said on the hotline Did China send a cargo plane with military supplies to Pakistan? India-Pakistan tension: Exodus of migrant workers takes a toll on industry Krishna said the move allowed the company to hire more programmers and sales staff, as it reallocates resources toward areas driving growth. The remarks come amid growing corporate adoption of AI agents (autonomous tools that can analyse spreadsheets, conduct research and draft emails), as companies explore the impact of generative AI on workforce dynamics. '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, because what it does is it gives you more investment to put into other areas,' Krishna told WSJ. The primary objective of AI integration, he said, is to improve operational efficiency by automating repetitive HR tasks such as employment verification and internal transfers. This shift allows HR teams to focus on strategic, higher-value initiatives. IBM's comments come as the information-technology workforce continues to shrink, with AI weighing on hiring in some areas as companies reassess their staffing needs. While widespread layoffs due to AI are yet to materialise, the report noted that some companies are holding back on headcount expansion as they evaluate the technology's long-term potential. Discover the stories of your interest Blockchain 5 Stories Cyber-safety 7 Stories Fintech 9 Stories E-comm 9 Stories ML 8 Stories Edtech 6 Stories For IBM, however, AI adoption has led to increased hiring in select functions. The company is currently hosting its annual Think conference in Boston. Krishna said clients are ramping up investments in AI despite ongoing economic uncertainty, as ET reported on May 6 . He noted that businesses are turning to AI to boost productivity, reduce costs and increase revenue.
