IBM made headlines in 2023 after laying off around 8,000 employees, primarily in its HR division, citing the rollout of its proprietary AI platform, AskHR, designed to automate administrative tasks. But what appeared to be a drastic workforce reduction has since turned into something else entirely.
According to CEO Arvind Krishna, the layoffs weren’t just about cutting costs — they were part of a broader workforce rebalancing strategy. Despite the job cuts, IBM’s total headcount actually increased. “AI lets us redirect investment into areas that need human touch — such as software engineering, sales, and marketing,” Krishna told The Wall Street Journal.
AskHR now handles 94% of routine HR tasks, with over 11.5 million interactions in 2024, leading to a $3.5 billion efficiency gain across 70+ job roles. Meanwhile, IBM’s Net Promoter Score jumped from -35 to +74, highlighting the success of the transformation from a user satisfaction standpoint.
The twist? IBM ended up rehiring the same number of people it laid off, just not in the same departments. Roles focused on creativity, customer engagement, and AI deployment took priority — reflecting a shift from headcount reduction to talent reallocation.
The lesson? Automation, when done right, doesn’t just remove jobs — it reshapes the workforce. IBM’s pivot serves as a blueprint for companies looking to adopt AI without sacrificing growth or human value.
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