IBM Fires 8,000 Workers As AI Takes Over HR

In a bold move that underscores the evolving relationship between AI and employment, IBM laid off 8,000 employees in 2023—only to rehire nearly the same number in strategic roles less vulnerable to automation. The tech giant’s transformation story reveals a deeper shift: automation isn’t simply eliminating jobs—it’s reshaping the workforce for a future defined by human-AI collaboration.

The bulk of the layoffs came from IBM’s human resources division, as the company rolled out AskHR, its proprietary AI platform designed to automate administrative tasks like vacation requests, payroll inquiries, and documentation management. The system now handles about 94% of HR-related tasks, logging more than 11.5 million interactions in 2024 alone.

IBM CEO Arvind Krishna, speaking in a recent Wall Street Journal interview, said that while automation brought unprecedented efficiency, it also created an opportunity to reinvest in roles requiring human judgment and creativity—like software engineering, sales, and marketing. “Our total employment has gone up,” Krishna said. “AI lets us redirect investment into areas that need human touch.”

The impact was profound. IBM reports a $3.5 billion boost in productivity across 70 job roles globally, while its internal Net Promoter Score (NPS)—a measure of employee satisfaction—jumped from -35 to +74 following the AI rollout.

Rather than treating automation as a cost-cutting tool, IBM viewed it as a catalyst for reinvention. AskHR wasn’t the end of a hiring cycle—it was the start of a new one. The company’s workforce strategy pivoted to prioritize roles that AI can’t easily replicate, showing that job displacement can coexist with job creation when guided by foresight and strategic planning.

IBM’s case stands in contrast to others. Duolingo, for instance, leaned heavily on AI to replace human tutors, only to backtrack when it became clear the bots couldn’t fully meet user needs. IBM avoided this pitfall by acknowledging AI’s limits—about 6% of HR queries still require human intervention—and building its systems accordingly.

Today, IBM employs over 270,000 people worldwide. Its approach offers a blueprint for businesses navigating the AI era: automation can drive growth, but only if paired with a dynamic, people-centered talent strategy.

As companies across industries explore AI integration, IBM’s story serves as both a warning and a roadmap. The future of work isn’t about eliminating jobs—it’s about evolving them.