IBM Halts Recruitment Process While Planning to Automate 7,800 Positions using AI
In Brief
IBM plans to pause suspending the hiring process for roles eligible for automation by artificial intelligence.
In an interview with Bloomberg, Arvind Krishna, CEO of IBM, mentioned that around 30% of back-office positions might be taken over by AI within the next five years.
Nevertheless, certain human resource tasks, like analyzing the workforce's diversity and overall productivity, are expected to remain human-driven for at least the next decade.
IBM, the prominent American tech giant, intends to freeze hiring for positions likely to be automated by AI, as reported. Bloomberg report .
During an interview with Bloomberg, CEO Arvind Krishna revealed that hiring within back-office departments, such as HR, would be temporarily halted. He noted that these roles affect about 26,000 staff members, indicating that around 30% could be transitioned to AI systems in a five-year timeline, potentially leading to job losses for approximately 7,800 individuals.
An IBM representative stated that the company would not fill roles that become vacant through attrition as part of their cost-cutting measures. The tech sector has experienced several rounds of layoffs, predating the AI surge sparked by ChatGPT last November. As fears about employment stability rise, it becomes increasingly clear that advancements in AI technology are having a profound impact. led to layoffs in the labor market worldwide.
Earlier this year, IBM cut about 3,900 staff Currently facing job cuts, which could rise to 5,000 once the layoffs conclude, the company continues to hire in areas of substantial growth, recently welcoming about 7,000 new employees in the first quarter of this year.
Bloomberg highlights that repetitive tasks, like generating employment verification documents or reallocating staff internally, are likely to become entirely automated. However, certain HR activities that require human insight, such as assessing workforce makeup and effectiveness, are expected to resist automation for the foreseeable future.
Since Arvind Krishna took over as CEO in 2020, IBM has focused on enhancing its open hybrid cloud platform and AI services aimed at enterprises. During the earnings call on April 19, James Kavanaugh, IBM's CFO, remarked: 'This quarter, we stayed committed to the core aspects of our business, boosting productivity and creating operational efficiencies.' He also mentioned that new initiatives for efficiency are projected to save the company around $2 billion by 2024.
- Recent months have seen a wave of layoffs As automation technologies like chatbots and natural language processing become more prevalent, widespread changes across the job market are occurring. Companies striving to cut costs and maximize profits prompt substantial job losses. The effect of AI on layoffs is visible in the rising unemployment figures in both the United States and the United Kingdom.
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