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Home Feature News

IBM to halt hiring for jobs, aiming to replace 7,800 jobs with AI technology

Syifa by Syifa
October 9, 2023
in Feature News, News, Technology
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IBM

credit by the software report

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Representing 30% of jobs to be replaced by AI, IBM CEO observed the employment verification letters and switched employees between departments can be fully automated.

Heaptalk, Jakarta — International Business Machines Corporation (IBM) plans to freeze its hiring for job roles and intends to replace around 7,800 jobs with Artificial Intelligence (AI) technology in the coming years.

In response to this matter, the CEO of IBM, Arvind Krishna, voiced, “Recruitment process, particularly in back-office functions such as human resources, will be stopped or slowed down. I could easily see 30% of that getting replaced by AI and automation over five years,” Cited in Bloomberg.

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Furthermore, Krishna emphasizes several tasks, such as providing employment verification letters and switching employees between departments, could be fully automated. Based on the report, the CEO claimed that other human resources tasks, like evaluating productivity, most likely not be displaced by automation or AI technology over the next ten years.

Artificial Intelligence technology evolution has allowed machines to process and analyze data faster and more accurately than humans. In several cases, AI is believed to simplify repetitive tasks efficiently and more quickly. However, in recent months, as capabilities of AI like ChatGPT have expanded exponentially, experts have warned of potential impacts on the labor market, such as technology, media, and legal industries.

Nevertheless, regarding this newest consideration of replacing its jobs with AI technology, a business insider claimed the IBM spokesperson admitted that the company had not implemented a broad to stop hiring and is still actively recruiting for numerous jobs.

“IBM is being deliberate and thoughtful in our hiring, focusing on revenue-generating roles. We are very selective when filling jobs that don’t directly touch our clients or technology. We are actively hiring for thousands of positions right now,” an IBM spokesperson said to Insider.

As it is known, International Business Machines Corporation currently possesses approximately 260,000 employees and continues recruiting for software development and customer-facing roles. Previously, the company has laid off around 5,000 of its employees. Nevertheless, this technology company based in New York has also augmented its workforce, reaching 7,000 staff in Q1 2023.

Leading the company as of 2020, CEO Krishna has worked to advance software products and services, including a cloud hybrid. He also divested from low-growth businesses such as Kyndryl Inc.’s managed infrastructure unit and part of the Watson Health business. The company is also currently considering peddling its weather unit.

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