In a bold strategic move, IBM announced it would eliminate approximately 8,000 jobs—mainly in the HR / back-office domain—on the grounds of automation and artificial intelligence taking over routine tasks. The company launched an AI platform intended to handle administrative workflows, such as travel requests, leave approvals and basic employee queries.
However, shortly after the initial layoffs, IBM ended up hiring nearly the same number of people back—but in new capacities. Instead of simply filling old roles, the new recruits were brought on in functions that emphasise human strengths: creativity, client engagement, strategy development and skills that machines struggle to replicate. According to internal sources, while the AI tool showed strong performance at scale, gaps remained—particularly where emotional intelligence, nuance and judgement were required.
IBM’s leadership framed the shift as not a retreat from automation, but a recalibration. The core lesson: technology can handle volume and speed, but it still needs human partners to deliver value in complex, uncertain or high-touch scenarios. The company’s experience serves as a case study in how organisations are rethinking workforce structure in the AI era—shifting from job elimination to job transformation.
