IBM to Replace HR Positions with AI... Eliminating 7,800 Jobs

AI Replaces 30% of Non-Customer Facing Staff
Simple HR Tasks Likely to Be Automated
Continued Hiring in Software Roles

IBM will stop hiring for jobs that are highly likely to be replaced by artificial intelligence (AI) within the next few years. IBM identified simple HR roles as jobs with high replacement potential.

IBM CEO Arvind Krishna stated in an interview with Bloomberg on the 1st (local time) that the company may halt or reduce hiring for HR and back-office positions.

[Image source=AP Yonhap News]

CEO Krishna said, "There are about 26,000 employees in non-customer-facing roles," adding, "We expect 30% of these jobs to be replaced by AI and automation within five years." This means that 7,800 jobs within IBM will disappear. An IBM spokesperson explained that the expected reduction in workforce includes not refilling positions that become vacant due to staff cuts.

Krishna specifically explained that lower-level HR personnel are most likely to be replaced by AI in the future. This includes employees responsible for tasks such as preparing employment verification letters and managing employee department transfers.

On the other hand, he explained that HR roles involving workforce composition and employee productivity evaluation are unlikely to be replaced by AI for the next ten years.

Unlike non-customer-facing roles, IBM continues to hire for software development and customer-facing positions. Earlier this year, IBM announced plans to cut 5,000 jobs but added 7,000 employees in the first quarter, resulting in an overall increase in hiring.

After large-scale layoffs and cost-cutting efforts, IBM posted strong results in the first quarter of this year, with net income reaching $927 million, up 26.4% year-over-year. IBM expects to save $2 billion by the end of next year thanks to measures to increase productivity and efficiency.

Bloomberg predicted, "With IBM strengthening its software sector in its business portfolio, including the acquisition of the open-source solutions company Red Hat, it is expected to continue steady growth despite the macroeconomic recession outlook."

This content was produced with the assistance of AI translation services.