IBM announces job cuts amidst AI integration: Report

NEW DELHI: Following a seven-minute meeting, International Business Machines Corp (IBM) disclosed plans for layoffs within its marketing and communications division, leaving employees grappling with uncertainty.

Jonathan Adashek, the chief communications officer at IBM, broke the news during the session, without revealing specific figures, according to sources cited by CNBC.

According to reports, IBM's move to streamline its workforce comes in the wake of CEO Arvind Krishna's previous statements outlining a shift towards integrating artificial intelligence (AI) into various functions, with the expectation of potentially replacing up to 30 percent of roles with automation over five years.

The company's emphasis on AI-led solutions has raised concerns about the future of traditional job roles within the tech giant.

The decision to downsize reflects a broader trend within the technology industry, with approximately 204 tech companies collectively slashing nearly 50,000 jobs in 2024, as reported by layoffs.fyi.

IBM's restructuring efforts aim to align its workforce with the changing technological landscapes, focusing on integrating AI technologies like WatsonX to enhance efficiency and productivity.

Despite IBM's incremental revenue growth, the company has refrained from significant hiring initiatives, opting instead to prioritise AI integration and workforce balance.

Notably, IBM's revenue from generative AI and WatsonX products doubled in comparison to the previous year, highlighting the company's quest towards AI-driven innovations.

IBM's recent voluntary redundancy program in Europe indicates its transformative approach towards restructuring, with a large portion of the reduction targeted at Enterprise Operations & Support (EO&S), Q2C missions, and Finance & Operations roles.