IBM pauses hiring on some roles it believes AI could replace
Tech giant IBM, which has a large office in Research Triangle Park and owns Raleigh-based Red Hat, is pausing hiring on jobs it believes could be replaced by artificial intelligence, the company's chief executive told Bloomberg this week.
Driving the news: CEO Arvind Krishna told Bloomberg that he expects the company to slow hiring for many back-office functions, like human resources, that aren't customer-facing roles.
- "I could easily see 30% of that getting replaced by AI and automation over a five-year period," he told the business news site.
- That could potentially impact around 7,800 jobs, according to Bloomberg, and the reductions could happen via not filling empty roles.
Why it matters: Companies across all industries are trying to determine how fast-advancing AI technologies, like ChatGPT, could affect them.
- IBM, which employs hundreds of thousands of people around the world, would be one of the biggest companies to announce a workforce strategy in response to AI.
State of play: Many tech companies are already looking for ways to cut costs.
- IBM announced job cuts earlier this year that could reach 5,000 total positions and Red Hat said last week it is cutting 4% of its jobs.
What they're saying: "IBM is being deliberate and thoughtful in our hiring with a focus on revenue-generating roles, and we’re being very selective when filling jobs that don’t directly touch our clients or technology," IBM spokesperson Tim Davidson told Axios in a statement. "We are actively hiring for thousands of positions right now."
More Raleigh stories
No stories could be found
Get a free daily digest of the most important news in your backyard with Axios Raleigh.