IBM halts hiring for 7,800 jobs that could be replaced by AI, Bloomberg reports

• IBM will slow or suspend hiring for back-office roles that AI could replace.
• IBM's CEO told Bloomberg 7,800 jobs, roughly 30% of back-end roles, would be replaced over 5 years.

AI-induced job cuts are here.

IBM, the international computing giant headquartered in New York, is halting hiring in its non-customer-facing roles that could be replaced by artificial intelligence, Arvind Krishna, the company's CEO, told Bloomberg.

The cuts will primarily impact non-customer-facing roles, such as human resources, Krishna said — a division that accounts for approximately 26,000 workers.

"I could easily see 30% of that getting replaced by AI and automation over a five-year period," Krishna told Bloomberg — a figure which represents roughly 7,800 jobs. While people currently in these roles won't be fired, an IBM spokesperson told the outlet any roles vacated by attrition wouldn't be filled.

Bloomberg previously reported that the company, which employs about 260,000 people, had announced job cuts earlier this year, amounting to 1.5% of its workforce.

A spokesperson for IBM told Insider in an emailed comment: "There is no blanket hiring 'pause' in place. IBM is being deliberate and thoughtful in our hiring with a focus on revenue-generating roles, and we're being very selective when filling jobs that don't directly touch our clients or technology. We are actively hiring for thousands of positions right now."

In recent months, as capabilities of AI like ChatGPT have expanded exponentially, experts have warned of potential impacts to the labor market. Tech, media, and legal industries are among those most likely to be impacted, Insider previously reported.