IBM CEO: Tech Layoffs Are a Correction, Not an AI Takeover

IBM CEO Arvind Krishna says the recent wave of tech layoffs is being misunderstood as an impact of artificial intelligence, when in reality, it is mostly a correction after years of over-hiring during the pandemic. In an interview with The Verge, Krishna explained that from 2020 to 2023, technology companies significantly increased their workforce—sometimes by as much as 50% to 100%—to match the rapid growth in digital demand. As market conditions stabilize, companies are now trimming excess roles, a process he described as a normal business adjustment rather than a reaction to AI replacing workers. He called it a “natural correction,” comparing it to an engineering system that briefly overshoots and then balances itself.

IBM is also undergoing job cuts as it pivots toward higher-growth areas such as artificial intelligence consulting and enterprise software. Though the company has not disclosed the exact number of layoffs, it said the reduction would affect only a “low single-digit percentage” of its 270,000 global employees. Krishna acknowledged that AI will cause some role displacement over the coming years, especially in routine tasks, estimating that up to 10% of positions in the U.S. employment pool could be affected. However, he emphasized that the disruption will be focused, not catastrophic, and far from the massive job loss many fear.

Interestingly, Krishna argues that AI should be used to empower workers rather than eliminate them. Instead of replacing entry-level employees, he says companies should use AI to accelerate their skills—turning beginners into experts much faster. This approach, he believes, will help fuel future innovation and maintain a strong talent pipeline. Krishna also noted that IBM expects to increase hiring of fresh graduates next year, especially in roles where AI boosts productivity and strategic thinking becomes more valuable.

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