The decision to cut jobs reflects IBM's ongoing efforts to realign its workforce in response to changing market dynamics. The company is reportedly planning to use Artificial Intelligence (AI) to enhance operational efficiency, including replacing nearly 8,000 positions with AI technologies. Despite these efforts, IBM announced during its last earnings call that it will have to let go of some of its workers to balance its workforce. This comes at a time when many other tech companies are also cutting jobs due to economic uncertainties and changes brought about by the pandemic.
Key takeaways:
- IBM has announced impending job cuts, particularly impacting employees in the Marketing and Communications divisions. Those who don't agree to relocate or secure a remote-approved role have been asked to leave.
- The decision is part of IBM's ongoing efforts to realign its workforce amidst evolving market dynamics, possibly using AI to enhance operational efficiency.
- IBM's job cuts come at a time when many tech companies are doing the same, with around 204 tech firms cutting close to 50,000 jobs since the start of the year.
- Despite its slow growth, IBM is facing tough competition in the AI business from rivals like Microsoft, Google, and Amazon.