Despite the layoffs, IBM has been opening positions to develop and maintain AI systems and is also focusing on WatsonX, a development studio that trains companies in building and releasing machine-learning models. The company has admitted to being slow in making money from AI products compared to competitors like Microsoft, Google, and Amazon. The tech industry has seen tens of thousands of layoffs this year, mirroring the mass layoffs of early 2023.
Key takeaways:
- IBM is laying off employees in its communications and marketing divisions as part of a workforce rebalancing effort.
- IBM CEO Arvind Krishna has previously stated that the company would enact a hiring pause for around 7,800 jobs that AI could replace, particularly back-office jobs such as those in human resources.
- Despite the layoffs, IBM has opened up positions to develop and maintain AI systems and is focusing on areas such as AI and hybrid cloud.
- IBM's contribution to the AI race is WatsonX, a development studio that trains companies in building and releasing machine-learning models, which has made “low hundreds of millions of dollars” in bookings in Q3 2023.