IBM CEO States AI-Driven Layoffs Resulted in Increased Hiring for Other Positions

IBM CEO Arvind Krishna recently discussed how the company's investment in artificial intelligence (AI) has reshaped its workforce. While AI automation led to the replacement of hundreds of human resources employees, it also spurred hiring in other departments, such as programming and sales.

Key Points:

• AI Replaces HR Roles: IBM deployed AI agents to handle tasks like spreadsheet analysis, research, and email drafting, reducing the need for HR staff.
• New Jobs Created: Despite layoffs in HR, IBM hired more employees in software engineering, sales, and marketing, areas Krishna described as requiring 'critical thinking' rather than repetitive tasks.
• Net Employment Increase: Krishna emphasized that total employment at IBM rose due to reinvestment in high-value roles. However, the company did not specify the timeframe for these changes.
• Tariff Impact Limited: Krishna noted that President Trump’s tariffs had a minimal effect on IBM, as most of its mainframe and quantum systems are U.S.-made. However, he warned that higher tariffs could hurt consulting demand if discretionary spending drops.
• Tech CEOs Meet with Trump: Krishna joined leaders from Intel, Qualcomm, and HP in a March meeting with Trump to discuss trade policy and manufacturing concerns.
• AI Cost Reduction to Drive Adoption: Earlier this year, Krishna predicted that falling AI costs would lead to a surge in adoption, stating, 'We will find that the usage will explode as costs come down.'

External Links:

• Arvind Krishna's IBM Profile
• IBM Official Site
• WSJ Report on IBM Layoffs

IBM’s strategy highlights a broader trend: AI displaces some jobs but creates opportunities in others, reinforcing the need for workforce adaptability in the tech-driven economy.