The world of work is changing, and two of the world’s biggest tech companies are leading the charge. IBM and Dropbox have both announced layoffs, citing the rise of artificial intelligence (AI) and automation technologies as a major factor in their decisions.
IBM CEO Arvind Krishna said in an interview that the computer giant is looking to reduce its administrative staff by 7,800 jobs over several years. He explained that “these non-customer positions number nearly 26,000 workers” and that “I can easily see 30% of that being replaced by AI and automation over a five-year period.”
Similarly, Dropbox CEO Drew Houston announced a 16% reduction of the company’s global workforce of 500, citing “the AI era has finally arrived” and noting the need to “act urgently to seize it.” The company is taking steps to hire in the AI space, but the cuts are still seen as necessary to take advantage of the new reality.
The news of the layoffs has been met with apprehension among workers and their families, but the companies insist that the move is necessary to stay competitive in the rapidly changing world of work. IBM and Dropbox are leading the way in embracing the new AI era, but it remains to be seen whether other tech companies will follow suit. As AI becomes more prevalent in the workplace, companies will need to make difficult decisions about how to adjust their workforce. This means that more jobs may be lost to automation, but it also means more jobs will be created as companies adjust to the new reality.