June 29, 202501:56:02 AM

IBM Rehires Staff After AI Layoffs Reveal Limits of Automation



IBM laid off 8,000 employees in 2023, aiming to replace support roles with AI tools like its “AskHR” chatbot. While automation saved $3.5 billion, the company soon rehired many workers for high-value roles in engineering, sales, and marketing.


CEO Arvind Krishna said AI freed up resources for strategic reinvestment. IBM’s experience highlights how AI is reshaping—rather than eliminating—the workforce, as demand grows for human skills in creativity, oversight, and innovation. 

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