IBM cuts 8,000 jobs as AI reshapes workforce, redirects savings
NEW YORK, UNITED STATES — IBM has laid off around 8,000 employees, primarily in HR, as it accelerates AI adoption to automate administrative tasks.
Despite the cuts, Chief Executive Officer (CEO) Arvind Krishna insists the company’s overall workforce is growing, with savings reinvested into higher-value roles like software development and sales.
AI replaces back-office roles
Currently, 200 of the human resources (HR) jobs have been filled by AI agents performing basic tasks such as handling employee questions and dealing with information.
Firms are not just slashing costs, said Krishna, but also making their operations more advanced.
“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,” he added.
He said the company is actually hiring more people, since the cost savings from automation are used for software and marketing.
It seems that automated technologies are most likely to affect process-doing work; hence, people in creative and strategic positions are protected.
IBM’s dual strategy: Internal AI adoption, external AI sales
While streamlining its workforce with AI, IBM is aggressively marketing automation tools to other businesses.
At its Think conference, the company unveiled AI solutions compatible with platforms like OpenAI, Microsoft, and Amazon, helping clients deploy their AI agents.
This dual approach positions IBM as both a practitioner and enabler of workplace AI. Nickle LaMoreaux, IBM’s Chief HR Officer, downplayed fears of mass job replacement, stating AI will mainly handle repetitive tasks.
“Very few roles will be completely replaced,” she said, framing automation as a productivity booster rather than a wholesale substitute for human labor.
Broader industry trend: AI disrupts traditional hiring
IBM isn’t alone—companies like Duolingo and Shopify are also pivoting to AI-driven efficiency. Duolingo recently cut human contractors and integrated AI, while Shopify CEO Tobias Lütke now requires teams to justify new hires by proving AI can’t do the job instead.
The trend signals a fundamental shift in labor dynamics, where AI handles routine work while humans focus on complex decision-making.
As Krishna noted, AI is being adopted very aggressively across industries, suggesting that businesses failing to adapt risk falling behind in an increasingly automated economy.
