In a bold move underscoring the transformative power of artificial intelligence (AI), IBM has laid off approximately 8,000 employees, most of them in its human resources (HR) department. The decision aligns with the company’s ongoing strategy to automate repetitive administrative functions and channel resources into higher-value roles.
Despite the cuts, IBM CEO Arvind Krishna maintains that the company’s overall head count has increased, describing the shift as a strategic evolution, not a workforce reduction.
AI agents step in as IBM reshapes its workforce
IBM’s internal overhaul reflects a growing corporate trend: replacing low-value, process-driven roles with intelligent automation. The company recently disclosed that around 200 HR roles have already been taken over by AI agents tasked with answering employee questions, handling paperwork, and organizing data—duties once managed by junior to mid-level staff.
“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.”
Those areas include software development, sales, and marketing functions, where human creativity and strategic thinking remain indispensable. According to IBM’s Chief Human Resources Officer, Nickle LaMoreaux, automation isn’t about wholesale job elimination.
“Very few roles will be completely replaced,” she said. “AI will take over the repetitive parts of the job, freeing up employees to focus on areas that need human judgment and decision-making.”
Tech titans embrace AI, redefine hiring norms
IBM’s AI-driven pivot mirrors a broader realignment in the tech sector. Major firms such as Microsoft, Salesforce, and Google have all enacted layoffs in tandem with large-scale AI deployments. Microsoft cut 6,000 jobs globally in May, even as CEO Satya Nadella revealed that AI now writes about 30% of the company’s code.
The shift is hitting entry-level workers hardest. According to the Federal Reserve Bank of New York, unemployment among recent college graduates aged 22 to 27 surged from 3.9% in 2022 to 5.8% in early 2025, outpacing the general unemployment rate of 4%.
Oxford Economics attributes much of this to the disappearance of routine tech roles, particularly in IT and computer services, which have seen an 8% decline in employment for this age group since 2022.
Companies such as Shopify have responded by requiring managers to justify new hires by proving AI can’t do the job first. By simultaneously deploying AI internally and selling its automation tools to other enterprises, IBM stands at the forefront of this shift. As automation becomes a central business strategy, adaptability quickly becomes the most valuable skill in the modern job market.
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