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IBM is planning to lay off thousands of employees this year. Many Big Tech companies are making similar job cuts as they adapt to the AI era.
Bloomberg reported on the 4th (local time) that IBM is reviewing workforce adjustments in the fourth quarter to focus on its software sector. In a statement released the same day, IBM said, “We regularly review and realign our workforce,” adding, “In the fourth quarter, we are implementing measures that will affect a single-digit percentage of our global workforce.” As of the end of last year, IBM employed 270,000 people worldwide. Even a 1% reduction would result in 2,700 layoffs. However, IBM added that while US employees may be included in the layoffs, the company’s employment scale in the US will remain at the same level as last year.
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Tech companies are adapting to the AI era by replacing traditional office tasks with AI. Last month, Amazon announced it would lay off about 14,000 workers. A significant portion of Amazon’s layoffs were reported to be in administrative roles, such as human resources. Andy Jassy, Amazon’s CEO, also sent an internal message stating, “The adoption of generative AI will reduce the scale of our office workforce over the next few years.”
Since the start of this year, 112,732 workers in 218 tech companies have been laid off, according to ‘Layoffs.’ Intel eliminated 22,000 jobs in April, and Microsoft let go of 9,000 employees in July. As tech firms invest in AI data centers and infrastructure, further workforce reductions are likely.
