IBM has just announced its financial report for the first quarter of the 2023 fiscal year. IBM’s revenue in the first quarter was US$14.252 billion, a year-on-year increase of 0.4%, excluding the impact of exchange rate changes, a year-on-year increase of 4.4%; net profit was US$927 million, a corresponding This compares to $733 million in the same period last year; profit from continuing operations was $934 million, an increase of 41% compared to $662 million in the same period last year.
IBM Chief Executive Arvind Krishna told Bloomberg on Monday that the company is putting a hiring moratorium on some 7,800 jobs that could be replaced by artificial intelligence (AI) in the next few years. In total, Arvind Krishna said about 26,000 employees work in these non-customer-facing roles.
He noted that within five years, 30 percent of non-customer-facing jobs could be replaced by artificial intelligence and automation. As a result, hiring in back-office functions such as human resources will be suspended or slowed down, Arvind Krishna said.
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In November last year, Microsoft-backed OpenAI launched ChatGPT, a chatbot that has taken the world by storm. Since then, artificial intelligence has attracted widespread attention from people around the world. The PC maker told the Journal that layoffs could include not filling positions left vacant by attrition.
