IBM CEO Explains Why AI Isn’t the Primary Cause of Job Cuts
The narrative blaming Artificial Intelligence (AI) for the ongoing wave of mass layoffs across the global technology sector has been sharply challenged by IBM CEO Aravind Krishna.
In a recent interview, Aravind asserted that the primary driver behind the job cuts is not automation, but rather a “natural correction” following what he termed “over-hiring” during the unprecedented expansion years of the COVID-19 pandemic.
The Correction After the ‘Gorge’
Aravind argued that between 2020 and 2023, many tech companies significantly ramped up their headcount, with some firms seeing their total employment numbers spike by anywhere from 30 to 100 percent.
The CEO used strong language, stating that companies “gorged on employment” in response to surging demand for digital services during the lockdown era.
This explosive, often unsustainable growth, has now necessitated a major market realignment.
Aravind compared the cycle to an “underdamped system” in engineering terms, where demand overshoots the required level before inevitably correcting itself.
Therefore, analysts see the current layoffs less as a technological reckoning and more as a painful return to equilibrium after years of excess hiring.
IBM CEO on AI’s True Impact: Displacement, Not Devastation
While firmly dismissing AI as the immediate cause of the current cuts, Aravind did acknowledge its long-term disruptive potential.
He projected that AI could lead to meaningful, though manageable, job displacement in the coming years.
His estimate suggests an impact of up to 10 percent of the total U.S. employment pool over the next couple of years—a significant figure, but far less catastrophic than the 30 to 40 percent estimates sometimes circulated.
He noted that displacement will be highly concentrated in areas involving routine, narrowly defined tasks
Warning Against ‘Shortsighted’ Strategy
The IBM chief also issued a cautionary note to companies that view AI primarily as a tool for cutting costs, especially by eliminating entry-level positions.
Aravind criticized this approach as “shortsighted,” arguing that removing the bottom rung of the career ladder starves companies of future innovation and leadership.
He advocated for using AI to enhance human capability, asking, “Wouldn’t you rather have an entry-level person and AI makes them more like a 10-year expert?”
Aravind believes that as AI drives productivity gains, companies will ultimately hire more people, but in different, higher-value roles that require strategic thinking, client deployment expertise, and human interaction.
Despite the industry trend toward hiring freezes, Aravind confirmed IBM is charting an opposite course, expecting to hire more college graduates in the next 12 months than in recent years, signaling confidence in evolving the workforce rather than simply shrinking it.
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