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IBM pauses hiring to replace 7,800 jobs with AI

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IBM is freezing hiring for back-office roles, with CEO Arvind Krishna revealing that AI and automation could replace roughly 7,800 jobs over the next five years. The cuts will target non-customer-facing positions like human resources, primarily by leaving vacated roles unfilled. Why it matters: It is one of the earliest direct admissions by a major tech chief that AI will outright replace administrative headcount.

IBM pauses hiring to replace 7,800 jobs with AI
Image: finance.yahoo.com

While people are still debating whether AI will take human jobs, Big Tech is already drawing up the list.

IBM expects to pause hiring for roles that could be replaced by artificial intelligence in the coming years, CEO Arvind Krishna told Bloomberg News. That figure could reach roughly 7,800 jobs.

Freezing back-office hiring

The freeze will specifically target back-office functions, with human resources being front and center. Krishna noted that hiring in these departments will be suspended or slowed down.

Over the next five years, he estimated that 30% of non-customer-facing roles could be replaced by AI and automation. Rather than conducting sudden mass layoffs, IBM plans to let normal attrition do the work by leaving vacated roles unfilled.

Why it matters

Ever since ChatGPT kicked off the generative AI race, workers have feared the pink slip. IBM is now one of the first major tech giants to put a specific number and timeline on AI replacement.

For workers in corporate support roles like HR, payroll, and routine administration, the writing is on the wall. These process-heavy, internal-facing jobs are the lowest-hanging fruit for automation.

IBM is being tactical here: using attrition instead of outright firing avoids ugly headlines and severance packages while cutting headcounts. That said, we think automating HR comes with real risks. Replacing human judgment and empathy with automated workflows could easily backfire if employees feel treated like numbers.

Sources (1)

  1. [1]
    finance.yahoo.com(opens in a new tab)Originalfinance.yahoo.com

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