IBM is cutting thousands of jobs worldwide as part of its ongoing shift toward artificial intelligence and software-driven services, yet the tech giant pledges to ramp up recruitment of young graduates skilled in emerging technologies.
The dual strategy highlights a defining paradox of the AI era: while automation is displacing traditional roles, it is also creating demand for a new generation of workers fluent in machine learning, quantum computing, and data science.
The company confirmed Tuesday that it would lay off a “low single-digit percentage” of its global workforce—potentially affecting more than 2,500 employees—as it restructures to align with what CEO Arvind Krishna called the “AI-first” transformation of business operations. IBM, which employed about 270,000 people globally at the end of 2024, said the job cuts are necessary to free up resources for its fast-growing AI and cloud divisions.
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“IBM’s workforce strategy is driven by having the right people with the right skills to do the work our clients need,” an IBM spokesperson told Fortune. “We routinely review our workforce through this lens and at times rebalance accordingly.”
The layoffs, part of a sweeping corporate trend toward automation and efficiency, come as companies across industries—from Amazon and Target to Accenture—reshape operations around artificial intelligence. What sets IBM apart, however, is its simultaneous pledge to hire aggressively among new graduates, particularly those with strong foundations in AI-related skills.
“People are talking about either layoffs or freezing hiring, but I actually want to say that we are the opposite,” Krishna told CNN last week, before confirming the latest cuts. “I expect we are probably going to hire more people out of college over the next 12 months than we have in the past few years.”
Krishna, who has positioned IBM as a frontrunner in generative AI and enterprise automation, said the company’s next phase of growth depends on talent that can build, deploy, and manage AI systems for clients worldwide.
“Skills of people are really important,” he emphasized. “We need skills in AI. We need skills in quantum. We need skills that our clients feel really good about technology being deployed in their environment.”
The company’s restructuring reflects a broader transformation in global employment patterns. Entry-level and mid-tier administrative roles—long seen as stepping stones for young professionals—are being automated at record speed. A Harvard University study found that firms adopting AI have sharply reduced junior hiring, with algorithmic systems now handling tasks such as data analysis, scheduling, and customer support that were once assigned to human staff.
According to the U.S. Federal Reserve, job postings have been declining since early 2022, making it harder for graduates to find entry-level work. Yet employers continue to seek candidates who can integrate AI tools into their workflows. A joint report by Microsoft and LinkedIn found that 71% of business leaders would rather hire a less experienced applicant who understands AI systems than a veteran who doesn’t.
Against this backdrop, it is believed that IBM’s approach—replacing redundant roles while hiring workers with advanced technical fluency—signals how companies plan to navigate the transition to automation.
Alyssa Cook, a senior managing consultant at Beacon Hill Staffing, told Fortune that firms “would rather hire a candidate who has hands-on experience with the specific tools they are implementing if they have the ability and interest to train up on other skills.”
Elon Musk, Satya Nadella, and Sundar Pichai have each echoed similar views in recent months, predicting that the next phase of workforce expansion will favor “AI natives”—workers who can build, train, or adapt models to improve business efficiency.
However, experts have cautioned that technical skills alone may not guarantee job security. “We’re not just looking for people who know the tools,” said Alejandro Castellano, CEO of automation firm Caddi. “We’re looking for those who are curious, adaptable, and thoughtful about how they use AI. That mindset makes the biggest difference.”
The dual strategy underscores IBM’s effort to balance efficiency with innovation—eliminating legacy roles that can be automated, while investing in the human capital that can steer its next phase of technological expansion.
Still, the reality for many workers is less optimistic. Thousands will lose their jobs in the months ahead, even as the company celebrates new AI-driven hires.