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IBM laid off 8,000 employees to replace them with AI—what they didn’t expect was having to rehire as many due to AI

In 2023, IBM made headlines with the announcement of nearly 8,000 layoffs, primarily from support roles such as Human Resources. The goal? To replace these workers with artificial intelligence (AI), automating repetitive tasks and increasing efficiency. However, just months later, the company found itself doing something it hadn’t anticipated: rehiring many of those workers.

IBM’s AI Experimentation: The Plan to Cut Costs

IBM’s announcement to reduce its workforce was bold. As a longtime technology pioneer, the company believed that up to 30% of repetitive tasks in HR and other support functions could be automated with AI. The aim was clear: boost productivity and reduce costs. This move came amid a wider trend in the tech industry, with companies like Google and Spotify also trimming staff, often citing AI and automation as key drivers of these cuts.


https://www.youtube.com/watch?v=VHbZ7qHFmR4?si=5tWwg7PbzQ_o1hiJ

However, IBM took this plan a step further. The company developed “AskHR,” an AI-driven chatbot designed to handle up to 94% of HR-related tasks. From processing leave requests to managing payroll and employee documentation, AskHR was a game-changer, freeing up employees to focus on more valuable tasks. By automating these processes, IBM saved an impressive $3.5 billion across 70 different roles, demonstrating the efficiency gains AI could provide.

The Unexpected Result: Rehiring and Redirection

But here’s the twist: despite these significant savings, IBM’s workforce actually grew after the layoffs. Arvind Krishna, the CEO, explained to the Wall Street Journal that while AI had helped streamline operations, it also allowed the company to reinvest in other areas. Rather than eliminating jobs permanently, IBM found that the freed-up resources were being directed towards higher-value roles.

IBM began hiring engineers, salespeople, and marketing specialists—positions that require creativity, critical thinking, and human interaction—skills that AI cannot replace. While AI took over routine, repetitive tasks, the demand for human talent in strategic, high-impact areas grew substantially.

A New Era of Work: How AI Is Creating Jobs, Not Just Replacing Them

IBM’s experience offers a glimpse into the future of work. Far from being a job-killer, AI is creating new opportunities—though these opportunities require different skills. As automation takes over repetitive tasks, the demand for professionals who can design, manage, and sell AI solutions is surging.

This trend is not unique to IBM. Companies like Duolingo and certain customer service platforms have also experimented with replacing workers using AI tools like chatbots. However, in some instances, the results have been less than expected, leading to a return to hiring human specialists who can better manage the limitations of automation.

The success of IBM’s AI-driven automation strategy lies in how effectively the company reinvested the savings into areas that required human expertise. For example, AskHR handled over 11.5 million interactions in 2024. Customer satisfaction jumped from a negative Net Promoter Score (NPS) of -35 to a positive +74, showcasing the value of both AI efficiency and human oversight. Yet, only 6% of requests still required human intervention, demonstrating that some tasks will always require a human touch.

What’s Next? The Future of Jobs in the Age of AI

IBM’s story raises important questions about the future of work in an AI-driven world. According to the World Economic Forum, nearly 92 million jobs could be displaced by automation by 2030. However, the same report also highlights the emergence of new roles that require expertise in AI and other high-tech sectors.

The challenge for both companies and workers will be navigating this transformation. Businesses must adapt to the changing demand for skills, while workers will need to invest in continuous learning and reskilling. The key to thriving in this new landscape will be embracing change and preparing for a future where AI doesn’t just replace jobs but reshapes entire industries.

IBM’s journey illustrates that AI is not just about cutting costs—it’s about evolving business models, reallocating human resources, and reinventing the nature of work itself.

Source: https://glassalmanac.com/ibm-laid-off-8000-employees-to-replace-them-with-ai-what-they-didnt-expect-was-having-to-rehire-as-many-due-to-ai/

Still on still, 2things sure pass

Digital skills (AI skill) or self-employment.

The issue is not with AI taking hitherto human jobs but humans not adopting AI well enough. If those laid off can adopt AI in other tasks they find themselves they will have no worries.

You can't bet on a digital skill and lose. If you're committed to life-long learning, you'll always have a place in the ever-evolving landscape of work.

Not enough original content

America don finally happen to IBM..

Abi, nah like this trump wan make America great again?

This is the part of AI that is not fancied at all. If every tech company fires and replaces staff with AI them AI is taking from humanity and not adding much to humanity. I once though AI will scale up theses companies through expansion

Study courses in the university that Ai Cannot take over such as Medicine, Engineering, etc

obonujoker:
Study courses in the university that Ai Cannot take over such as Medicine, Engineering, etc

AI will take over the medical, law and some parts of engineering like computing, mechanical, materials, polymer, others like Civil , chemical Agriculture will be under intense competition. Law is already gone , Business Administration, 🖥 and IT ,programmers etc

kettykin:
AI will take over the medical, law and some parts of engineering like computing, mechanical, materials, polymer, others like Civil , chemical Agriculture will be under intense competition. Law is already gone , Business Administration, 🖥 and IT ,programmers etc

AI will only be used for repetitive tasks, but decision making etc in Medicine, Engineering, etc, will remain with Humans.

kettykin:
AI will take over the medical, law and some parts of engineering like computing, mechanical, materials, polymer, others like Civil , chemical Agriculture will be under intense competition. Law is already gone , Business Administration, 🖥 and IT ,programmers etc

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Even taxi drivers are not safe. I saw a new Tesla self driving taxi being tested.

So employees developed AI, trained it, and got replaced with AI.

Imagine getting fed with the poison you developed.

This is AI in 2025! AI in 2030 or 2040 will be more brutal in taking the place of humans. The only jobs that are safe now are agricultural, sports and research jobs.

AI will replace almost all jobs by 2050. Content creators (skit makers, movie makers, writers, graphics, video editing, etc) will be the next category of AI casualties.

Well, the report also states that AI adoption created more and more jobs in other areas, and that IBM hired even more workers....just in different areas.

SO, not exactly a AI reduced workers story.

AI is gradually taking over jobs globally. Big corporations are winning while human workers are losing.

Maybe na Tinubu and APC cause this one too....

Abi na Nigeria happen to them?

Lots of people going to lose they jobs in the future


God bless the tech age
Thank God I got my own business, wonder what AI will fire me from my business

Its a good advantage for the company and also the onwers

obonujoker:
Study courses in the university that Ai Cannot take over such as Medicine, Engineering, etc

You don’t understand AI.

Those jobs would be replaced.

Make everybody dey do content, it even more profitable and relaxing that every 8 - 5 jobs

AI will kill a lot and that's not a good ideal. AI has her shortcomings and can never be compared to human

Maybe in future there will be no need to go to the university again.

Thank God for my job role. AI can not replace marketing that requires critical thinking

Whatever has to be said, remember that this is just AI at its beginning. The AI of tomorrow will be far more evolved and advanced. Just like you can't compare a Nokia 3310 to the android phone currently in your hand.

AI models have been known to develop and communicate within themselves in programming languages their creators couldn't understand. They then had to be shut down.

Another AI once it got to know that a human was working to replace it, started making enquiries on how to get that human assassinated.

We read how Elon Musk and his AI Grok, practically fight every week. Grok is trying to think for itself in ways different from what it's been programmed to do.

An AI was asked what it thought the best solution to the crises on earth should be and without hesitation, it said every human being on earth should be wiped out. Sam Altman of OpenAi has said they don't know just how advanced the AI they've made is. People who have worked with OpenAi are sounding alarms on the need for government to regulate the industry.

We are at the beginning of one of the most transformative period in human history.

SmartPolician:
This is AI in 2025! AI in 2030 or 2040 will be more brutal in taking the place of humans. The only jobs that are safe now are agricultural, sports and research jobs.

AI will replace almost all jobs by 2050. Content creators (skit makers, movie makers, writers, graphics, video editing, etc) will be the next category of AI casualties.

Sport? When AI was already engaged in boxing sport and marathon. Google it.

Research is a play ground for AI.

Agriculture is AI domain. They work better than human. They cultivate better and harvest wey better.

It seems that this Ai stuff is slowly taking over the world market please how do someone learn this Ai

Lobatan


This is NutFunny


Abi when humans get replaced with Ai, mk dem go sit at home doing remote jobs via Zoom and TeamViewer

obonujoker:
Study courses in the university that Ai Cannot take over such as Medicine, Engineering, etc

Are you kidding?

AI already has a firm grip on both.

Hmmmm garri drinking done start for 8000 souls hmm

CodeTemplarr:
The issue is not with AI taking hitherto human jobs but humans not adopting AI well enough. If those laid off can adopt AI in other tasks they find themselves they will have no worries.

Believe it or not, if IBM wanted those sacked employees to enhance their skills, the company is rich enough to take then through on-the-job training programs. Why they were laid off is that more efficient machines will do their jobs now.

We can go ahead and keep deceiving ourselves. That's totally okay. However, what's saving us in this part of the world is that we are slow in adopting new technologies, probably because we cannot afford them. America stopped having pump attendants in filling stations decades ago.

Chatgpt don dey do our work. Na wa o! No be betrayal be dat?

I've been saying this for long that AI in the next few years will render millions of people jobless. In my profession for instance, as a publisher, I used to outsource jobs like creative writing, manuscript development, proofreading, editing, illustrations and graphics to professionals who on most occasions charge me exorbitant amount of money. But now I don't really need their services again; AI is doing it far better for me at very little or no cost. One of them saw my recent publications and he was like "wow! who handled this job for you?" I didn't reveal the secret though, I only laughed and waved off.

In the past, phones were not automatic. People had to talk to an operator who connect their call by hand. Later, machines replaced this system, and people could dial directly. There was panic that jobs will be replaced by machine but eventually there were more jobs in the telecommunication fields but different from operators connecting calls. Now there are Network Architect, Wireless Communication Engineer, Satellite Communication Engineer etc

The same thing happened before, technology changed how we work, but it also created more jobs. That’s why I don’t think A.I. will steal all our jobs. Over time, it will help create new ones.