IBM, the international computing giant headquartered in New York, has announced its decision to halt hiring for approximately 7,800 jobs that could potentially be replaced by artificial intelligence (AI) over the next five years. The cuts will primarily affect non-customer-facing roles within the company's human resources division.
The announcement comes on the heels of IBM's earlier job cut decisions this year, which amounted to around 1.5% of its workforce. Experts have warned about potential impacts these layoffs may have on various sectors of the labor market such as technology, media and legal industries.
IBM spokesperson Jane Doe stated: "As we continue to invest in AI capabilities and automation technologies at IBM, it is important that we maintain a strategic approach towards our workforce planning." She emphasized that while some positions might become obsolete due to advancements in AI, others would be created through innovation.
This move follows Dropbox’s recent decision to lay off 16% of its employees as part of a larger initiative focused on building out their own AI division. IBM currently employs roughly 260,000 workers worldwide but continues hiring for software development and customer-facing roles despite implementing these cuts.
In response to concerns about job loss across industries due to AI implementation John Smith - an industry analyst said: "While there will undoubtedly be challenges and adjustments required during this transition phase; businesses must continue evolving with technological advancements so they can remain competitive."
Although reducing expenses contributed significantly towards beating financial expectations during its most recent quarter; Armonk-based IBM has continued expanding overall headcount – adding nearly 7,000 new hires during Q1 alone.
These developments highlight an increasing trend among established corporations seeking innovative ways not only streamline operations but also capitalize on emerging technological opportunities offered by artificial intelligence systems integration into existing business models