AI effect: IBM lays off 8,000 employees of HR departments worldwide

Recently, IBM CEO Arvind Krishna said that the company has significantly invested in Artificial Intelligence (AI) applications to automate some jobs including HR-related work.

American software giant International Business Machines (IBM) has announced plans to lay off approximately 8,000 employees worldwide.

Most of the affected workforce are from the Human Resources (HR) department. Recently, IBM CEO Arvind Krishna, in an interview with the Wall Street Journal, said that the company has significantly invested in Artificial Intelligence (AI) applications to automate some jobs including HR-related work.

Krishna also noted that the use of AI in its operations has led to a lot of savings for the company and is being redirected to hiring people in marketing, experienced software engineers, and sales operations.

The news comes close on the heels of Google and Microsoft cutting jobs across its global operations.

Last month, Alphabet Inc. (& Google) CEO Sundar Pichai said that 30 per cent of the new code written for Google was generated by AI, five per cent more than in October 2024.

Earlier this month, Microsoft announced it was cutting 6,000 jobs, around three per cent of its global workforce.

With rapid progress in AI technology, many market analysts believe most of the regular white collar jobs will get significantly impacted by 2030.

Software engineers are advised to up their skillsets in generative AI to have a competitive edge over their peers.

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