IBM is laying off 8,000 employees, as AI takes over certain jobs in HR. At the same time, IBM is developing new AI tools and concentrating resources where they matter the most.

IBM has chosen to cut around 8,000 jobs this year, mainly from HR, since AI has taken over 200 HR positions. IBM is expanding its focus on automation to help manage repeated duties such as making sense of data, responding to employee inquiries and processing paper documents.

IBM’s CEO noted that while there have been some layoffs, the company’s staff total has continued to go up. As savings grow after automation, attention is being redirected to software development, marketing and sales. Krishna said, “Routine jobs have decreased, but we have more workers now, as the company has moved toward positions that involve more creativity and thinking ahead.”

According to Nickle LaMoreaux, AI will reduce the need for people to handle repetitive jobs, so employees can concentrate on decisions and judgments that require human understanding.

In spite of cutting jobs, IBM keeps increasing its AI solutions. At Think 2023, the company introduced AI tools meant to help companies start and operate agents that align with OpenAI, Amazon and Microsoft products.

Auto insurance companies are shifting to AI automation as part of a broader industry pattern. Even Duolingo and Shopify are turning to AI to lower their use of human workforce. IBM concentrating on AI shows that both innovation and a smooth workforce shift in today’s tech field are important to the company.