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IBM lays off 8,000 employees for AI automation, only to rehire just as many soon after because of...
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🖥️ IBM lays off 8,000 employees for AI automation, only to rehire just as many soon after because of…
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In 2023, IBM made headlines when it laid off 8,000 employees from its human resources department. The reason? A new artificial intelligence system called AskHR was set to replace routine tasks like payroll management, vacation requests, and employee documentation.
The company argued that this transformation would streamline operations, reduce costs, and ultimately boost productivity. And indeed, IBM reported an impressive $3.5 billion increase in productivity across more than 70 job roles.
However, the real twist came when the company’s total workforce didn’t shrink as expected. Instead of simply slashing jobs, IBM found itself rehiring in areas that required human creativity and expertise. Arvind Krishna, CEO of IBM, explained that the savings from automation were funneled into hiring more skilled workers for roles in software engineering, sales, and marketing. These new positions, focused on high-value tasks, became a direct result of IBM’s AI-driven evolution. Read more
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