IBM has recently laid off approximately 8,000 employees, with most of the job cuts reportedly coming from its Human Resources (HR) department. This significant reduction follows the company's recent implementation of AI agents that have already replaced around 200 HR roles, marking a clear shift towards automation of repetitive tasks within the company.
Earlier this month, IBM introduced software programs capable of handling tasks such as sorting data, responding to employee queries, and processing internal paperwork—duties traditionally managed by human HR staff. These AI agents are specifically designed to automate routine, repetitive functions that require minimal human judgment, allowing IBM to streamline operations and reduce reliance on manual labor. Now, with the company doubling down on AI and automation efforts, thousands more jobs are being phased out as these technologies expand their reach.
IBM’s CEO, Arvind Krishna, addressed these changes in a recent interview, emphasizing that while AI and automation are transforming certain enterprise workflows, the company’s total employee headcount has actually increased. He explained that the cost savings from automating routine tasks are being reinvested in other critical areas of the business such as software development, marketing, and sales. “While we have done a huge amount of work inside IBM on leveraging AI and automation on certain enterprise workflows, our total employment has actually gone up,” Krishna said. “It gives you more investment to put into other areas.”
This reflects IBM’s broader strategy: rather than shrinking across the board, the company is shifting its workforce focus. Positions that require creativity, strategic thinking, and interpersonal skills—like those in marketing, product development, and customer engagement—remain in demand. Conversely, roles that revolve around back-office, repetitive work are at higher risk of being replaced by AI-driven automation.
Nickle LaMoreaux, IBM’s Chief Human Resources Officer, also weighed in on the impact of AI on jobs. She acknowledged that while AI will take over many repetitive tasks, “very few roles will be completely replaced.” Instead, AI is expected to augment human workers by freeing them from mundane duties, allowing them to concentrate on tasks requiring judgment and decision-making.
Despite the layoffs, IBM is actively promoting its AI tools to external clients. At its recent annual Think conference, the company unveiled new services aimed at helping businesses build and operate their own AI agents. These tools are designed to integrate seamlessly with major AI platforms from OpenAI, Amazon, and Microsoft, highlighting IBM’s commitment to advancing enterprise AI adoption.
IBM’s move towards automation is part of a larger industry-wide trend. Companies worldwide are increasingly experimenting with AI to automate tasks and control costs. For example, last month, Duolingo announced it would gradually replace human contractors with AI for tasks that machines can handle, with CEO Luis von Ahn stating, “We’ll gradually stop using (human) contractors to do work that AI can handle.”
Similarly, Shopify CEO Tobias Lutke shared an internal memo outlining a new hiring policy where any request for additional headcount must be justified by proving that AI cannot perform the required job. “Before asking for more headcount and resources, teams must demonstrate why they cannot get what they want done using AI,” Lutke wrote. “What would this area look like if autonomous AI agents were already part of the team?”
Overall, these shifts underscore the growing influence of AI in reshaping workforce structures, with companies balancing automation-driven efficiencies and the evolving role of human workers in the AI era.
