The IBM has made a recent announcement for the current quarter. The plan is to change how things work and rely more on AI. However, while it may lead to positive changes in software and productivity, there is also the fact that jobs will be eliminated.
Why the Change to AI?
At the end of last year, IBM had about 270,000 employees. There was a small reduction in jobs as 2024 came to a close.
The company wishes to redirect focus towards software and services. Both are experiencing higher growth in the industry for other companies, so IBM wants to stay ahead of the game.
Unfortunately, this means that thousands of jobs that rely on human interference may be eliminated. With advancements in AI, that means there will be less desire to hire human employees.
The company had made this announcement shortly after Amazon had taken a similar action; about 14,000 positions were cut from Amazon.
Concerns from Others
Brody Ford, a reporter for Bloomberg News, states, “IBM kicked off layoffs which will impact thousands… It’s a tough job market right now. Layoffs have ticked up, and attrition is way down at most companies.”
Dan Sheehan, the author of the Daily Stock Market Newsletter, shares similar concerns. He stated, “This isn’t just cost-cutting, it’s automation replacing humans.” Sheehan shared facts about how IBM already eliminated marketing and communications jobs last year in March in a similar strategy. These job layoffs are adding pressure to the job market. Sheehan adds “That’s the uncomfortable reality of AI automation: it works. And when it works, people lose their jobs.”
How the Job Market May Change
Angelo Caproitti, an IT infrastructure strategist, has shared some statistics from the article, as well as what it can do to affect the job market. As IBM is replacing HR roles with AI, it is automating tasks such as tracking workforce movement.
Caproitti states, “Nearly 8,000 jobs are expected to be affected, while IBM simultaneously added 7,000 new hires in technical roles in Q1.” The paradox is that job categories are shifting, but infrastructure still requires people. To put it simply, “If AI is the new backbone, then human adaptability is the connective tissue-and it must be supported, not sidelined.”
Feel free to read the full article, or even leave your thoughts on the matter, through the link on LinkedIn
Link: https://www.linkedin.com/news/story/ibm-plans-to-cut-thousands-of-jobs-this-quarter-6743748/
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