Layoffs are becoming prevalent across various sectors as companies adapt to the growing trend of artificial intelligence and automation. From Amazon to Target, major employers are cutting thousands of jobs in their efforts to prioritize efficiency and automation.
Recently, IBM announced it would reduce its workforce by thousands by the end of the year, shifting its focus toward more promising software and AI sectors. This decision might have a particularly severe impact on the younger generation, specifically Generation Z.
Only a week earlier, IBM CEO Arvind Krishna had conveyed a more optimistic outlook regarding job opportunities, particularly for new graduates. He expressed intentions to increase hiring of recent college graduates over the coming year, contrary to the general narrative of job cuts in the industry. “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 mentioned during an interview, emphasizing a commitment to creating new job opportunities.
Despite acknowledging that automation could result in some positions being eliminated, he argued that the overall effects of these changes would be beneficial for the company. An IBM spokesperson clarified that the latest layoffs would affect a “low single-digit percentage” of the organization’s global workforce, which comprised about 270,000 employees at the start of 2024. Even a modest reduction of 1% could mean around 2,700 workers might be impacted.
“IBM’s workforce strategy is driven by having the right people with the right skills to do the work our clients need,” the spokesperson added, reflecting the company’s ongoing reassessment of its workforce needs.
The specific departments affected by these cuts remain unspecified, but research from Harvard University indicates that entry-level roles are among the most vulnerable as companies increasingly adopt AI technologies. The research highlights that junior employment has experienced significant declines in firms integrating AI into their operations.
For young professionals navigating this shift, whether entering the job market or recovering from layoffs, the challenges remain daunting, especially as job postings have been steadily declining since their peak in March 2022, according to the Federal Reserve.
Krishna advised job seekers to concentrate on honing the skills relevant to the AI-driven economy. “Skills of people are really important,” he stated, noting the demand for expertise in AI, quantum computing, and other evolving technologies. This proactive approach to skill development could empower professionals to remain competitive amidst the changing landscape of work.
Despite the current challenges, there is a glimmer of hope as companies like IBM are still looking to invest in new talent, especially college graduates, opening pathways for the next generation to thrive in an evolving job market influenced by technological advancement.