IBM cuts jobs, shifts focus to AI, cloud computing
NEW YORK, UNITED STATES — Multinational technology corporation International Business Machines Corp. (IBM) is the latest firm to announce layoffs as it shifts focus on artificial intelligence (AI).
The workforce reduction, affecting the marketing and communications division of IBM, was communicated in a brief meeting led by Chief Communications Officer Jonathan Adashek.
This move aligns with IBM’s previous indication of impending job cuts during its Q4 2023 earnings report.
“In 4Q earnings earlier this year, IBM disclosed a workforce rebalancing charge that would represent a very low single-digit percentage of IBM’s global workforce, and we expect to exit 2024 at roughly the same level of employment as we entered with,” a company spokesperson said in a statement to MarketWatch.
The spokesperson cited increasing productivity and realigning the workforce towards high-demand skills like AI and hybrid cloud as driving factors behind the restructuring.
IBM, a prominent provider of cloud computing and AI solutions, has been strategically shifting its focus towards these cutting-edge technologies.
Last year, CEO Arvind Krishna revealed plans to replace nearly 8,000 roles with AI-driven positions, underscoring the company’s commitment to AI adoption.
Aside from IBM, Swedish fintech Klarna has also revolutionized customer service, allegedly leading to the displacement of 700 jobs but enhancing efficiency by handling 2.3 million dialogues.
Klarna CEO Sebastian Siemiatkowski, however, clarified that they did not displace any jobs as a result of the AI chatbot.
The tech industry has witnessed around 50,000 job cuts so far in 2024, with major players like Alphabet, Amazon, Paypal, Salesforce, and Cisco also trimming their workforces.
