IBM CEO on Tech Layoffs
IBM CEO arvind krishna attributes tech layoffs to pandemic-era overhiring, not AI.
He emphasizes that the massive hiring between 2020-2023 (30–100% staff increases at some companies) is now undergoing a natural correction.
Krishna described layoffs as a normal industry adjustment, stating:
“When an industry goes too far, it has to come down and balance itself.”
IBM itself announced it will reduce about 1% of its global workforce (~2,700 employees) by Q4 2025 as part of routine business adjustments.
AI and Employment
Krishna acknowledges AI will impact jobs, but the effect will not be catastrophic.
He predicts around 10% job losses in specific sectors in the coming years.
Contrasts this with fears of 30-40% workforce reductions, noting such scenarios are unlikely.
AI is expected to handle entry-level work, while humans focus on strategic and creative roles.
Opportunities Created by AI
Krishna stresses that AI should complement human work, not just cut costs.
Criticizes companies that limit entry-level hiring, warning that this harms future innovation.
Points out:
“With AI, a new young employee can do the work of a 10-year veteran. If there are no entry-level people, who will create new technologies tomorrow?”
IBM’s Hiring Strategy
IBM plans to increase campus hiring despite other companies slowing down.
Krishna announced that in the next 12 months, ibm will hire more new graduates than in previous years.
The company aims to balance AI-driven efficiency with human talent development, ensuring both innovation and workforce growth.
Summary:
Krishna frames the layoffs as a correction of pandemic-era overexpansion, not a direct result of AI. While AI will reshape roles, ibm emphasizes strategic hiring and nurturing new talent, blending technology with human creativity to drive growth.
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