IBM plans to triple entry-level hiring this year because of AI
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Narrative violation alert: Tech giant IBM plans on tripling entry-level hiring this year, including for software developers.
Why it matters: The current storyline in corporate America is that AI obliterates the need for both entry-level workers and software engineers.
Zoom in: What IBM is doing is "pretty provocative," Nickle LaMoreaux, the company's chief HR officer, said earlier this week at Charter's Leading With AI Summit.
- The idea is to create "totally different jobs" for people, she explained. "The entry level jobs that you had two to three years ago, AI can do most of them," she said. "You have to rewrite every job."
- Her comments echo those made by IBM CEO Arvind Krishna last year in an interview with Axios.
How it works: In the past an entry-level developer would've spent 34 hours a week coding — now they're working on marketing, or out with clients or building totally new products versus simply maintaining old ones, LaMoreaux said.
IBM's definition of "entry-level," includes recent graduates, those reentering the workforce, and individuals changing careers, a spokesperson clarified to Axios in a statement.
- The company said it's also still hiring for more senior roles.
- Yes, but: In 2025, IBM cut its 270,000 person workforce by about 1%, driven by "business demand."
The big picture: Those just starting out in their careers are facing a terrible job market.
- AI is taking the blame. But some economists argue it's a more routine story of higher interest rates slowing down the economy, plus pandemic over-hiring.
State of play: The situation is moving fast and companies are still figuring it out. Some have reversed themselves on job cuts.
- In a survey of 240 financial services CEOs released this week by EY, 60% said investment in AI would lead to maintaining or increasing headcount.
- 28% expected a reduction in the workforce.
Between the lines: Hiring at the entry level is a cheap option. One of the earliest studies on AI's workforce impact, from 2023, found that it serves as a way to quickly train newbie employees, and helped reduce turnover.
- IBMs LaMoreaux explained: If companies simply forego hiring cheaper entry level talent, they may likely have to poach mid-level employees from competitors at a 30% premium, "and they don't know our culture," and it costs to get them up to speed.
- Plus, many argue that younger workers are a better bet at a time of tech upheaval, as Jo Constantz at Bloomberg points out. They are more AI fluent.
The bottom line: The need for young, tech-forward and inexpensive talent isn't likely to vanish.
