IBM to Lay Off Thousands Amid Heightened AI Adoption
In a strategic maneuver reflective of the expanding embrace of artificial intelligence (AI), IBM revealed on Tuesday its decision to terminate a significant portion of its workforce by year’s end.
The cloud behemoth is poised to implement job reductions equating to a “low single-digit percentage” of its global employee base. With an approximate total of 270,000 personnel worldwide, even a mere one percent reduction could translate to a staggering loss of at least 2,700 positions.
According to a company spokesperson, as reported by CNBC, “In the fourth quarter, we are executing an action that will impact a low single-digit percentage of our global workforce. While this may impact some US-based roles, we anticipate that our US employment will remain flat year over year.”
This announcement from IBM emerges in the context of a broader trend among tech powerhouses, which are also downsizing as they increasingly integrate AI technologies to enhance operational efficiency.
The ramifications of such layoffs resonate throughout corporate America, raising concerns as many of these enterprises have substantial offices in countries like India and maintain significant personnel here.
In a similar vein, Amazon has recently disclosed plans to lay off approximately 14,000 corporate employees to streamline bureaucratic processes as part of a long-term strategy aimed at cost reduction in the era of AI.
Reports indicate this could mark the largest layoff phase in Amazon’s history, with total cuts potentially escalating to as high as 30,000.
On a more positive note, IBM posted robust earnings that exceeded expectations in October, showcasing a 10 percent surge in revenue attributed to its software division.
Under the leadership of CEO Arvind Krishna, who succeeded Ginni Rometty in 2020, IBM has seen a notable diversification of its revenue streams.
In previous statements, Krishna noted that AI agents had automated tasks previously handled by approximately 200 individuals in IBM’s human resources sector, thus enabling the firm to recruit additional sales personnel and software engineers.
Earlier this year, at the SXSW (South by Southwest) festival, Krishna asserted that AI would not displace programmers but instead amplify their productivity.
He refuted Anthropic CEO Dario Amodei’s projection that 90 percent of coding may soon be performed by AI, suggesting instead that it will more realistically range between 20 to 30 percent.
“Are there some really simple use cases? Yes, but there’s an equally complicated number of ones where it’s going to be zero,” he remarked.
Source link: Indianexpress.com.
