IBM Places a Long-Term Bet on Early-Career Talent Amid AI-Led Layoffs

While several global technology companies are reducing headcount and citing artificial intelligence (AI) as a reason for workforce restructuring, IBM is taking a different approach. The company is significantly increasing its investment in early-career talent, arguing that long-term business success depends on maintaining a strong talent pipeline.

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Nickle LaMoreaux, Chief Human Resources Officer at IBM, has announced that the company will triple its entry-level hiring in the US during 2026. The hiring drive will span multiple business units, focusing on roles that many in the industry believe could eventually be automated by AI.

Investing in the Next Generation of Talent

Speaking at the Charter AI Summit in New York earlier this year, LaMoreaux warned against cutting entry-level recruitment in response to AI-driven efficiency gains and said:

If we don’t continue to invest in entry-level hires, what happens in three to five years? There’s no pipeline; the well simply dries up

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LaMoreaux believes AI will reshape jobs but not eliminate the need for human talent. She said this during New York Tech Week.

AI will take a portion of jobs, but because we’re growing, we still need human jobs to fill that other space

IBM has spent the past two years automating several internal processes. Its AI-powered AskHR platform now handles approximately 94% of routine employee requests, while the remaining complex cases requiring ethical judgment, empathy, and decision-making continue to be managed by HR professionals.

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Also Read: Hiring Surge in Indian IT Industry for Forward Deployed Engineers

IBM Chairman and CEO Arvind Krishna has echoed this strategy, explaining that automation has enabled the company to redirect resources toward business growth rather than workforce reduction.

“Our total employment has actually gone up,” Krishna said, noting that savings from administrative automation have been reinvested in hiring software developers, programmers, sales professionals, and other growth-focused roles.

IBM currently employs more than 275,000 people across over 170 countries.

AI Layoffs Are Being Reconsidered

IBM’s hiring strategy comes as growing evidence suggests that several organisations are reassessing workforce reductions made in the name of AI adoption.

Recent studies and company experiences highlight this shift:

• Research by Orgvue found that 39% of business leaders had laid off employees because of AI, while 55% later admitted those decisions were premature.
• Commonwealth Bank of Australia reportedly reversed some workforce reductions after its AI voice assistant struggled to manage customer demand.
• Ford rehired hundreds of engineers to resolve complex quality issues that automation alone could not address.
• According to Robert Half, nearly one-third of US hiring managers who eliminated roles because of AI later recruited employees for similar positions.

Industry experts also emphasise that AI still requires significant human oversight.

Jessica Zhang, Senior Vice President for APAC at ADP, noted that inconsistent or inaccurate AI outputs often force organisations to bring back human expertise, warning that excessive dependence on AI can lead to duplicated effort, slower decision-making, and lower productivity.

Building Leadership for the Future

LaMoreaux argues that reducing entry-level hiring may deliver short-term savings but creates long-term leadership challenges. Without continuously bringing in junior talent, organisations risk weakening their future leadership pipeline.

According to a 2026 study by the IBM Institute for Business Value, nearly two-thirds of executives say AI is fundamentally reshaping roles and workflows. However, many organisations have yet to redesign their workforce development strategies to keep pace with these changes.

For young professionals entering the workforce, LaMoreaux advises focusing on measurable business outcomes rather than simply listing job responsibilities. She also encourages developing practical AI skills while strengthening uniquely human capabilities such as communication, critical thinking, judgment, and leadership.

She believes these skills will remain essential despite rapid advances in AI.

As IBM prepares to announce its second-quarter 2026 financial results on July 23, the company’s hiring strategy will be closely watched by both investors and the wider technology industry.

LaMoreaux remains confident that organisations investing in early-career talent today will be better positioned for long-term success.

The companies that will be most competitive in three to five years are the ones that are doubling entry-level hiring right now.

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