IBM lays off 8,000 employees as AI reshapes workforce, boosts hiring in other departments

IBM has laid off approximately 8,000 employees in 2025, with the majority of the cuts affecting its Human Resources (HR) division. The move comes amid the tech giant’s aggressive adoption of artificial intelligence to automate back-office operations, a trend reflecting a broader shift across the technology industry.

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The company has introduced AI agents capable of handling administrative tasks such as employee support, data management, and documentation, replacing nearly 200 HR roles earlier this month. These AI-driven tools are designed to operate with minimal human oversight, streamlining workflows and reducing operational costs.

Despite the layoffs, IBM reports an overall increase in its global workforce. The company is reallocating resources towards departments that demand human expertise, including software development, marketing, and sales. This strategic pivot is intended to modernize IBM’s structure and focus on roles that require creativity, strategic thinking, and interpersonal skills.

As AI takes over repetitive and process-oriented tasks, IBM is also positioning itself as a leader in enterprise AI solutions. At its recent Think conference, it introduced a range of AI tools aimed at helping other businesses deploy intelligent agents compatible with platforms like OpenAI, Microsoft, and Amazon.

IBM’s transformation reflects a growing industry trend. Companies such as Duolingo and Shopify are also leveraging AI to reduce dependency on human labor for routine functions, signaling a fundamental change in the future of work.