In 2023, IBM made a bold move by laying off nearly 8,000 employees, mainly in its human resources department. This decision aimed to replace routine HR tasks with an artificial intelligence system called AskHR, developed to handle a wide range of repetitive processes. Based in Armonk, New York, IBM sought to automate functions like vacation requests, payroll management, and employee documentation, intending to boost efficiency and cut costs.
The AI platform was highly effective, automating approximately 94% of those routine tasks. IBM reported that this transformation led to a $3.5 billion increase in productivity across more than 70 different job roles. The company viewed the move as part of a larger wave in the tech industry, where firms like Google and Spotify have also embraced automation to streamline operations and reduce staff in support functions.
Unexpected Employment Growth Despite Layoffs
Despite the large-scale layoffs, IBM’s total workforce did not shrink as anticipated. Instead, the number of employees increased after the initial job cuts.
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