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IBM to freeze hiring for roles that could be replaced by AI
https://www.whatjobs.com/news/usa/us-business-news/ibm-to-freeze-hiring-for-roles-that-could-be-replaced-by-ai
By Nithya Bose in US business news, posted May 3, 2023
IBM CEO Arvind Krishna has announced plans to freeze hiring for positions that may be replaced by artificial intelligence in the near future.
In an interview with Bloomberg News, he said back-office roles like human resources would be slowed down or halted.
He said it is estimated around 30 percent of its 26,000 non-customer-facing jobs could be automated over five years, resulting in approximately 7,800 jobs being lost.
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IBM currently employs around 260,000 people and will continue to hire for software development and customer-facing roles.
Tasks like providing employment verification letters or transferring staffers between units are also expected to be fully automated.
However, HR functions like evaluating workforce composition and productivity will remain untouched over the next decade.
Krishna’s plan is one of the largest workforce strategies announced in response to the rapid advancement of AI technology.
Read More: IBM announces 3,900 global job cuts but will continue hiring in ‘Higher Growth’ areas
It has raised concerns about its potential to disrupt the labor market.
Krishna, who became CEO in 2020, has worked to focus IBM on software and services such as hybrid cloud.
IBM announced job cuts earlier this year, which could be as many as 5,000 workers once completed.
However, Krishna said the company has added to its workforce, bringing on around 7,000 people in the first quarter.
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The company topped profit estimates in its most recent quarter due to expense management, including the earlier-announced job cuts.
Krishna believes that the US could see a “shallow and short” recession towards the end of this year.
However, the company’s strong software portfolio, including the acquired unit Red Hat, should help maintain steady growth despite worsening macroeconomic concerns.
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