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IBM Implements Staff Reductions in Marketing and Communications - RetailWire

Mar 14, 2024 - retailwire.com
IBM has informed its marketing and communications division employees about an impending workforce reduction, according to an insider. This follows IBM CEO Arvind Krishna's statement about the company's significant investment in AI upskilling, and previous announcements about substituting nearly 8,000 jobs with AI technology and cutting 3,900 positions. Despite a 4% increase in revenue in Q4, IBM's growth remains modest, with CFO James Kavanaugh highlighting the need for workforce rebalancing.

IBM is striving to integrate into the AI landscape, introducing WatsonX, a development studio for training and deploying machine-learning models. However, IBM faces stiff competition from Microsoft, Google, and Amazon in the enterprise AI sector. Krishna admitted to CNBC that IBM had been slow in capitalizing on Watson's potential, acknowledging the company's pursuit of overly ambitious solutions.

Key takeaways:

  • IBM has announced an imminent reduction in its workforce within its marketing and communications division, following previous job cuts and substitution of positions with AI technology.
  • The company has been investing significantly in upskilling its employees on AI, with initiatives like the WatsonX development studio, aimed at assisting companies in training and deploying machine-learning models.
  • Despite some growth, IBM's expansion remains modest and it faces fierce competition in the enterprise AI sector from giants like Microsoft, Google, and Amazon.
  • IBM's CEO Arvind Krishna has acknowledged the company's slow progress in capitalizing on the potential of Watson, its AI technology, and the company divested its Watson Health unit nearly two years ago.
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