Amid AI adoption, IBM employees at two divisions laid off

During a concise seven-minute meeting, Jonathan Adashek, IBM’s Chief Communications Officer, announced job reductions within the company’s marketing and communications divisions. Adashek conveyed that IBM is enacting cost-cutting initiatives within these departments, leading to a reduction in the workforce. While the precise number of affected employees remains undisclosed, CNBC sources familiar with the matter corroborated this information.

The move comes as a surprise as CEO Arvind Krishna had been focusing on training employees to adapt to an AI-powered business environment. In December 2023, Krishna had mentioned that up to 30% of specific roles, particularly in back-office functions, could be replaced by AI and automation within the next five years.