Archive · 7 Dec 2025
IBM CEO Blames Pandemic Hiring for Tech Layoffs, Not AI
IBM's CEO, Aravind Krishna, says that the recent tech layoffs are not mainly because of AI, but because companies hired too many people during the pandemic.
He explains that many companies increased their staff by a lot to meet the high demand at that time.
Now that things have calmed down, these companies are reducing their staff to match the current needs.
While AI will cause some job losses, it's not as much as some people think.
AI will change some jobs, making them more about strategy and design, and less about routine tasks.
Workers will need to learn new skills to adapt.
The CEO also suggests that governments should help workers with training and support during this transition.
IBM CEO Aravind Krishna attributes current tech layoffs to pandemic over-hiring rather than AI.
Companies expanded their workforce by 30-100% during the pandemic to meet demand.
AI is expected to displace up to 10% of U.S. jobs, but not catastrophically.
AI will reshape jobs, emphasizing strategy, product design, and oversight.
Reskilling and upskilling are crucial for workers to adapt to AI-driven job changes.
- Who
- IBM CEO Aravind Krishna
- What
- Tech layoffs are primarily due to pandemic over-hiring, not AI
- When
- Pandemic hiring binges between 2020 and 2023
- Where
- Silicon Valley and beyond
- Why
- Companies expanded headcount significantly during the pandemic and now need to correct
- CEO
- Aravind Krishna
- Company
- IBM
- Primary Cause of Layoffs
- Pandemic over-hiring
- AI's Impact on Jobs
- Up to 10% displacement in U.S. employment
- AI's Role in Job Changes
- Productivity multiplier, reshaping jobs
- Key Takeaway for Workers
- Reskilling and upskilling are crucial
- Policy Implications
- Targeted safety nets and workforce development
