IBM Implements Hiring Freeze as CEO Foresees AI Impact on Jobs

IBM has announced a freeze on hiring as its CEO, Arvind Krishna, anticipates the replacement of approximately 7,800 jobs by Artificial Intelligence (AI) in the next few years. In an interview with Bloomberg News, Krishna expressed the expectation that nearly one-third of the company’s non-customer-facing roles could be automated within the next five years.

Krishna clarified that these non-customer-facing roles, accounting for around 26,000 workers, might witness a 30 percent replacement by AI and automation over the specified period. Although back-office employees constitute only a fraction of IBM’s total workforce of around 260,000, the tech giant has been actively hiring in other areas, despite having let go of approximately 5,000 workers previously.

IBM has not issued an official response to queries from Al Jazeera, but a spokesperson informed AFP that while there isn’t a blanket hiring pause, the company is exercising selectivity in filling positions that do not directly impact clients or technology.

The decision reflects the broader trend in the tech industry, as companies grapple with the potential impact of AI on job roles. As AI-powered technologies, such as OpenAI’s ChatGPT, advance rapidly, concerns about significant workforce disruption have emerged. Some analysts fear mass layoffs, while others argue that AI’s ability to enhance productivity and work alongside human employees could create new job opportunities and entire industries.

The recent acknowledgment by Chegg’s CEO, Dan Rosensweig, during an earnings call about ChatGPT’s impact on their new customer growth rate contributed to a nearly 50 percent drop in Chegg’s share price on Tuesday. The incident underscores the evolving landscape where businesses navigate the challenges and opportunities presented by AI technologies.

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