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IBM Lays Off 8,000 Employees to Adopt Artificial Intelligence, But Is Forced to Rehire Due to Unexpected Demand Growth

Written by Roberta Souza
Published on 19/05/2025 at 18:19
Updated on 19/05/2025 at 18:20
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foto/reprodução: IBM
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Automation Brought Efficiency, but Generated New Job Opportunities in Areas Such as Software Engineering and Marketing, Surprising the Company

The IBM (International Business Machines Corporation) was one of the companies that led the wave of mass layoffs in the technology sector, laying off 7,800 employees in January 2023. The company’s strategy focused on automating processes with artificial intelligence and replacing staff in various areas. However, what IBM did not expect was that this decision would result in the need to rehire the same number of workers.

IBM’s Automation Strategy and Its Consequences

The CEO of IBM, Arvind Krishna, stated in an interview with The Wall Street Journal that, despite the layoffs, the company saw an increase in the total number of employees. He explained that automation allowed IBM to invest in other areas, such as software engineering, sales, and marketing. “Although we have done a tremendous amount of work within IBM to leverage AI and automation in certain business workflows, our total employment has actually increased,” Krishna said.

This statement highlights a growing trend in the labor market: automation not only replaces jobs but also creates new opportunities. Have you ever stopped to think about how artificial intelligence can generate jobs in sectors that previously did not exist? This is an important reflection, as many people fear job loss due to technology, but changes in the market can be more complex.

The Role of Automation in the Human Resources Sector

IBM has been using the AskHR solution to automate tasks related to human resources management. Since 2021, the company has managed to automate 94% of routine HR tasks, resulting in savings of US$ 3.5 billion in recent years. This savings enabled IBM to redirect resources to areas that require more manpower, generating new hiring.

The AskHR not only answers simple questions but also allows managers to perform transactions such as employee transfers and promotions with just a few clicks. In 2024, the system processed over 11.5 million interactions, with 94% of inquiries resolved directly on the platform. This efficiency has been a significant differentiator for IBM. Do you believe that automation can improve the work experience in companies? How do you imagine technology could make your day-to-day work easier?

The Broader Scenario of Automation in the Labor Market

The situation of IBM is not an isolated case. Other companies have opted to replace workers with artificial intelligence in different sectors. For example, some organizations have cut up to 90% of their customer service teams in favor of chatbots. Duolingo attempted to implement a similar approach, but faced difficulties and had to seek programmers to resolve issues.

A study by the World Economic Forum, titled “The Future of Jobs Report 2025,” predicts that by 2030, the automation of processes could lead to the destruction of nearly 92 million jobs. This alarming data highlights the urgent need for reskilling and adapting the workforce. Do you feel prepared to adapt to a constantly changing labor market? Which skills do you think will be the most important in the future?

The Future of Artificial Intelligence and Employment

IBM is preparing for a future in which artificial intelligence not only complements but can replace human functions. The company plans for AskHR to become an autonomous digital assistant, capable of performing tasks without human intervention by 2025. This is a significant change that could redefine the way companies operate.

Automation and the use of AI are transforming the labor market in ways that many could not foresee. Although IBM initially laid off employees, its automation strategy ultimately created new opportunities in different areas. This raises an interesting question: should companies prioritize automation over investing in human capital?

The relationship between artificial intelligence and employment continues to evolve, and it is important for all of us to pay attention to these changes.

What do you think about this transformation? Do you believe that artificial intelligence is a threat or an opportunity for the future of work? Share your thoughts in the comments!

SOURCE: IGNBRASIL

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Roberta Souza

Author for the Click Petróleo e Gás portal since 2019, responsible for publishing over 8,000 articles that have garnered millions of views, combining technical expertise, clarity, and engagement to inform and connect readers. A Petroleum Engineer with a postgraduate degree in Industrial Unit Commissioning, I also bring practical experience and background in the agribusiness sector, which broadens my perspective and versatility in producing specialized content. I develop content topics, disseminate job opportunities, and create advertising materials tailored for the industry audience. For content suggestions, job vacancy promotion, or advertising proposals, please contact via email: santizatagpc@gmail.com. We do not accept resumes

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