International Business Machines Corporation (IBM), also known as Big Blue, the US-based technology company, will lay off approximately 8,000 employees due to a loss in the Human Resources (HR) department. Recently, the company replaced nearly 200 of its employees with Artificial intelligence (AI) agents in the HR sector as part of an automation push. Now, tech companies are taking work from machines or AI, which will help them save crores and increase productivity.
The American-based firm reportedly developed software that performs tasks by replacing humans, such as sorting information, answering employee queries, or processing internal paperwork, as per the India Today report. These AI software agents are developed to handle repetitive tasks that do not require human minds and understanding. Now, the company is willing to create more such agents, which means more layoffs in the coming days.
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Arvind Krishna, IBM's chief executive officer, hinted at the job cuts in a recent interview. He stated that AI and automation were being used to streamline certain enterprise processes and make teams more efficient. He also gave the total number of employees at the company and said it has increased, as savings from automation are being invested in other parts of the business.
Krishna also stated that a huge amount of work, like automating certain enterprise workflows inside the company, is being performed by AI agents, and employment has actually gone up. As per IBM, it's not shrinking but 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 risk.
IBM's HR officer Nickle Lamoreaux has said that the use of AI doesn’t necessarily mean job cuts. He said very few positions will be fully replaced. AI will take over the repetitive parts of the job, freeing up employees to focus on areas that need human judgment and decision-making.