IBM Layoffs Signal AI’s Growing Role in Reshaping Jobs and Workforce Strategy

IBM Layoffs: 8,000 HR Roles Cut as AI Takes Over Routine Tasks

IBM recently cut around 8,000 jobs, mostly within its human resources division. This move is part of the company's shift toward AI-driven efficiency, but it doesn't mean a hiring freeze. In fact, IBM continues to hire in tech roles, focusing on skills that AI can’t replace.

AI Automation Hits HR Hard

IBM introduced AskHR, a proprietary AI platform that automates many repetitive HR tasks like vacation requests, payroll management, and employee documentation. AskHR now handles about 94% of these tasks, with 11.5 million interactions in 2024 alone.

This automation has improved efficiency by an estimated $3.5 billion across more than 70 job roles worldwide. The result? Fewer human hands are needed for routine HR processes.

Layoffs Are Just One Side of the Story

Despite these cuts, IBM’s overall workforce is growing. CEO Arvind Krishna explained that the savings and efficiencies from AI allow the company to reinvest in roles requiring creativity, strategic thinking, and emotional intelligence.

Hiring is increasing in software engineering, sales, and marketing—areas where human skills still outperform current AI capabilities.

The Human Touch Remains Essential

AskHR handles the majority of HR queries, but about 6% still require human intervention. Complex or sensitive issues need the nuance and empathy only humans can provide.

This shows that automation is about reallocating talent, not just reducing headcount. Companies like IBM are phasing out routine tasks while increasing demand for AI-related roles.

Other Factors Behind Workforce Changes

• Geographical Shift: IBM is moving some jobs to India, tapping into a large talent pool and potentially lowering costs.
• Return to Office Policies: Stricter mandates may be encouraging voluntary departures, especially among older employees less willing to relocate or comply.
• Consistent Rebalancing: IBM’s CFO states these changes align with trends from previous years, but AI and workplace policies add new layers.

What This Means for HR Professionals

IBM’s experience offers a clear example of how AI impacts HR roles. As automation takes over repetitive tasks, HR teams need to focus on strategic areas like employee development, complex problem-solving, and change management.

Effective reskilling and transparent communication are critical to managing transitions. Upskilling programs prepare displaced employees for new roles that AI can’t fill.

For HR professionals wanting to stay ahead, learning about AI’s impact on workplace functions is vital. Resources like Complete AI Training offer courses on automation and AI integration tailored for business environments.

Looking Ahead

IBM is investing heavily in AI platforms like WatsonX, aiming to help other businesses build AI solutions. The challenge is balancing technology with human insight.

Automation will continue to reshape jobs, but the value of human creativity, empathy, and strategic thinking remains irreplaceable. The future belongs to organizations that adapt their workforce intelligently—cutting routine roles but growing positions that require uniquely human skills.

For HR teams, this means preparing for change, embracing AI tools, and focusing on human-centered talent strategies to stay relevant and effective.