IBM, the multinational technology company, has announced that it will freeze hiring and use artificial intelligence (AI) to replace around 7,800 positions, as part of a cost-cutting measure. The news was revealed by CEO Arvind Krishna, who stated that the company would be investing in automation and redesigning its business processes to help it become more competitive.
The move comes as IBM has struggled to keep up with its competitors, who have been able to operate at lower costs by using AI and other automation technologies. IBM has been attempting to transform itself into a cloud computing and AI powerhouse, but the company’s profits have been declining over the past few years.
Krishna stated that the company would be focusing on its core areas, which include hybrid cloud and AI, and would be reducing its investments in businesses that are not core to its operations. The CEO explained that the company had already made progress in this direction and had already divested certain businesses and restructured others.
The news about the job cuts comes as a surprise to many, given that the company had been hiring aggressively until recently. In fact, in 2020, the company had announced that it was looking to hire 30,000 employees globally, with many of those positions focused on its cloud computing business. However, the COVID-19 pandemic has hit the company’s profits hard, and it has been forced to take drastic measures to cut costs.
Krishna stated that the company would be using AI to automate certain roles, and that employees who are affected by the job cuts would be offered training and support to help them transition to new roles or find new employment. He also stressed that the company remained committed to its employees and would continue to invest in their development.
The CEO acknowledged that the decision to cut jobs was a difficult one, but he explained that it was necessary in order for the company to remain competitive in the market. He also stated that the company was committed to being transparent with its employees and would provide regular updates on its progress.
The news has been met with mixed reactions, with some analysts praising the move as a necessary step towards cutting costs and becoming more competitive, while others have criticized the decision as being short-sighted and harmful to employees.
IBM is not the only technology company to turn to AI and automation to cut costs. Many other companies, including Microsoft and Amazon, have been investing heavily in these areas in recent years, and the trend is likely to continue as more companies look to cut costs and increase efficiency in the face of economic uncertainty.
Overall, it remains to be seen how successful IBM’s cost-cutting measures will be, and whether the company will be able to remain competitive in the rapidly changing technology landscape. However, one thing is clear: the company’s decision to use AI to replace jobs is a sign of the increasing role that these technologies will play in the future of work.
Krishna’s announcement has been met with mixed reactions from employees and industry experts. Some see the move as a necessary step to keep up with technological advancements and remain competitive in the market. Others, however, have raised concerns about the impact on human workers and the potential for bias in AI systems.
IBM has a history of investing in AI technologies and has been at the forefront of developing AI-based products and services. The company’s Watson AI platform is widely used in industries such as healthcare, finance, and retail. By using AI to replace human workers, IBM is taking the next step in its evolution as an AI-driven company.
