IBM recently laid off approximately 8,000 employeeswith the majority of job cuts occurring in the Human Resources (HR) department. This move is part of a larger plan to integrate artificial intelligence (AI) into back-office operations, especially in repetitive administrative tasks.

AI Replaces HR Roles

Earlier this month, IBM replaced around 200 HR roles with AI agents. These agents handle tasks such as answering employee queries, processing paperwork, and organising HR data. Designed to work with minimal human supervision, these AI tools aim to boost efficiency and reduce operational costs.

CEO Highlights Workforce Transformation

IBM CEO Arvind Krishna described the AI adoption as “very aggressive” and part of efforts to streamline enterprise workflows. Despite job cuts in some departments, Krishna emphasised that IBM’s overall headcount has actually increased. Savings from automation are being redirected into growth areas such as software development, marketing, and sales.

Krishna explained that IBM’s approach is not just job cutting but modernising the workforce by focusing on roles that require human creativity, strategic thinking, and people management. By contrast, routine administrative roles are becoming vulnerable to automation.

AI Will Augment, Not Fully Replace Jobs

Nickle LaMoreaux, IBM’s Chief Human Resources Officer, stated that AI is unlikely to fully replace most jobs. Instead, AI will take over the repetitive parts, freeing employees to focus on tasks requiring human judgement and decision-making.

IBM Promotes AI Tools for Clients

Alongside internal changes, IBM recently showcased new AI tools at its annual Think conference. These tools help businesses develop and deploy AI agents compatible with platforms like OpenAI, Microsoft, and Amazon, highlighting IBM’s ambition to lead in enterprise AI solutions.

Reflecting a Broader Industry Shift

IBM’s strategy reflects a wider industry trend. Companies like Duolingo are phasing out contractors in favour of AI, and Shopify has introduced policies to justify new hires based on AI’s ability to perform the role. The focus is increasingly on blending automation with human expertise.