IBM Layoffs: In Seven-Minute Meeting, Tech Firm Announces Layoffs Across Two Divisions

IBM told its marketing and communications staff that some of them might lose their jobs soon. Jonathan Adashek, IBM’s chief communications officer, conveyed the decision during a brief meeting lasting approximately seven minutes with employees in the affected unit, according to a report by CNBC citing the sources. This follows IBM’s plan to use more Artificial Intelligence (AI) and cut thousands of jobs.

IBM’s CEO said in December that they were teaching everyone about AI because they planned to replace many jobs with AI. Then, in January, IBM said they were cutting 3,900 jobs. IBM expects to have about the same number of employees by the end of 2024 as they did at the start, according to a report by CNBC citing the sources.

This layoff at IBM is part of a bigger trend in the tech industry. The recent layoffs coincide with a broader trend of downsizing within the tech sector. In the current year, approximately 204 tech companies have collectively slashed nearly 50,000 jobs, as reported by Layoffs.fyi, a layoff tracking website. January witnessed heightened activity in layoffs, with Alphabet, Amazon, and Unity announcing workforce reductions.

Even though IBM’s revenue has been growing slowly, they haven’t been hiring more people. They recently said that they made more money in the last quarter, but they also talked about needing to balance their workforce.

IBM has been endeavouring to integrate itself into the evolving AI landscape. In May, IBM unveiled WatsonX, described as a development hub for organisations to “train, refine, and implement” machine learning models. During IBM’s earnings call in January, it was revealed that the revenue generated from generative AI and WatsonX products had doubled compared to the third quarter of 2023. 

So, while IBM is making money, they’re also cutting jobs and focusing more on AI.