IBM is reportedly cutting staff in its marketing and communications division after its CEO, Arvind Krishna, suggested last year that AI could replace many non-customer-related jobs.
IBM is apparently dismissal of employees in its communications and marketing division as the company turns to AI to replace non-customer-facing roles.
Last year, IBM CEO Arvind Krishna said it plans to pause or slow hiring for about 26,000 non-client back-office positions, which represented about 10% of the company’s total workforce, as AI and Automation can do things for people.
Krishna said he “could easily see” 30 percent of those positions, or about 8,000 employees.replaced by AI and automation over the course of five years.
Asked about the layoffs, an IBM spokesperson said that during its fourth-quarter earnings report in January, IBM indicated that layoffs could occur.
(Related: IBM’s deep dive into AI: CEO Arvind Krishna touts ‘massive’ enterprise opportunity for partners)
“In this year’s fourth quarter results, IBM disclosed workforce rebalancing fees that would amount to a very low single-digit percentage of IBM Global Workforceand we expect to leave 2024 with approximately the same level of employment as we entered with,” IBM told CRN in a statement.
CNBC was the first to report on IBM’s new layoffs in marketing and communications.
In early 2023, Armonk, N.Y.-based IBM laid off about 3,900 employees. IBM told CRN at the time that the layoffs were linked to its Kyndryl spinoff and healthcare sector divestitures.
IBM CEO: Enterprise AI ‘is a massive market opportunity’
AI is one of the biggest market opportunities for IBM, Krishna told CRN this year. Specifically, the enterprise AI market represents a huge sales and customer opportunity for IBM and its channel partners.
“It’s a huge market,” Krishna said. “When I look at all the estimates…the numbers are so high that it’s hard for most people to understand them. … It shows that there are many opportunities for many of us.
He touted IBM’s Wastonx platform as an AI offering that’s generating business today.
“This will drive business value for our customers,” Krishna said. “Our Watsonx platform to really help developers, whether it’s code, modernization, etc. …these are areas where, for our partners…they’ll look at this and say, “This is how we can bring a lot of innovation to our customers and help their business along the way.” »
