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IBM CEO Announces Hiring Freeze Amid AI Strategy Shift

International Business Machines (NYSE: IBM) plans to halt hiring for jobs that could be replaced by artificial intelligence. CEO Arvind Krishna shared this decision in a recent interview with Bloomberg News, indicating a strategic shift towards AI at the century-old U.S. company.

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IBM logo

Impact on Non-Customer-Facing Roles

Krishna stated that about 26,000 non-customer-facing roles, including human resources, will experience suspended or slowed hiring. Over five years, he estimates that roughly 7,800 (or 30%) of these jobs may be lost to AI-driven automation.

Task Automation and Future of Employee Evaluations

Tasks typically performed by these workers, such as providing employment verification letters or transferring employees between divisions, are expected to become fully automated. However, Krishna believes that AI will not likely take over functions like employee evaluations within the next decade.

IBM's Workforce Changes and Ongoing Hiring

IBM currently employs around 260,000 workers. Earlier this year, the company announced plans to cut approximately 5,000 jobs. Despite these changes, IBM continues to hire for software developer and customer-facing positions, adding nearly 7,000 people in the first quarter.