[HN Gopher] IBM to pause hiring in plan to replace 7,800 jobs wi...
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       IBM to pause hiring in plan to replace 7,800 jobs with AI
        
       Author : isaacfrond
       Score  : 229 points
       Date   : 2023-05-02 08:34 UTC (14 hours ago)
        
 (HTM) web link (finance.yahoo.com)
 (TXT) w3m dump (finance.yahoo.com)
        
       | vcryan wrote:
       | Lol with the quality of work coming out of IBM these days, they
       | should just replace every one
        
       | cjbgkagh wrote:
       | I see this as a sales pitch for consulting, they want people to
       | hire them to transform their companies from overseas outsourcing
       | to AI outsourcing. Doing it to themselves first serves as a case
       | study.
        
       | rvz wrote:
       | Oh well. Typical good ol' IBM shapeshifting again.
       | 
       | They also know it is time to learn to code adapt.
        
       | prepend wrote:
       | My experience is that there are lots of BS consulting jobs where
       | I would wonder "what do these 10 people do?"
       | 
       | This included lots of offshoring companies, like IBM, that seemed
       | more about filling out whatever the budget sheet given to them
       | than actually making software or even any evidence of software
       | (commits, issues, etc).
       | 
       | I expect that there are firms out there right now using ChatGPT
       | to produce the facade of work so instead of messing around and
       | billing 8 hours times 30 people every day, they just have a few
       | people fiddling with prompts and checking in the generated text.
       | 
       | I actually think this might have the same impact but would hope
       | that the value just goes back to the client in having employees
       | do the AI work directly.
       | 
       | The joke was that behind every successful offshore project was
       | one or two really busy onshore engineers manically covering and
       | integrating work from the away team.
        
         | isoos wrote:
         | I know a company that already reaches test coverage metric
         | goals by feeding chatgpt with code that they need test for.
         | These are tests based on mocks, running trivial things,
         | providing little to no value to the overall codebase. But if
         | the requirements are garbage, the delivered items will be
         | garbage too.
        
         | 908B64B197 wrote:
         | > The joke was that behind every successful offshore project
         | was one or two really busy onshore engineers manically covering
         | and integrating work from the away team.
         | 
         | To me, ChatGPT's output is indistinguishable from what I've
         | seen offshored coders produce. Only difference is you get the
         | results in 30 seconds in a chat window instead of overnight in
         | a zip file emailed to you.
         | 
         | There are whole businesses here in America that only do
         | rewrites for offshored projects.
        
         | moffkalast wrote:
         | Consulting jobs are largely bullshit because their main role is
         | to be a corporate mercenary that makes up solid data supporting
         | the direction that management wants to go. Their job is
         | weaponizing confirmation bias.
         | 
         | Relevant: https://twitter.com/ConsultingHumor
        
           | jiggawatts wrote:
           | That's unfair and inaccurate.
           | 
           | We also serve as convenient scape goats in case risky
           | projects go bad.
        
           | hgsgm wrote:
           | That's Management Consulting. Tech consulting is building
           | expensive boondoggles.
        
             | giantrobot wrote:
             | AbstractBoondoggle boondoggle = new
             | AbstractBoondoggleFactory()
        
               | a4isms wrote:
               | Thor's Law:
               | 
               | As the length of a thread about software design
               | increases, the probability of someone mentioning a
               | "general-purpose tool-building factory factory factory"
               | approaches one.
               | 
               |  _Including the act of quoting Thor 's Law._
               | 
               | ------
               | 
               | https://www.danstroot.com/posts/2018-10-03-hammer-
               | factories
        
               | moffkalast wrote:
               | Amazing read. And I'm stealing that "Library: you call
               | it. Framework: it calls you." quote.
               | 
               | Though in reality does that mean that the guy bought a
               | metal 3D printer?
        
         | jsight wrote:
         | > The joke was that behind every successful offshore project
         | was one or two really busy onshore engineers manically covering
         | and integrating work from the away team.
         | 
         | After getting ChatGPT to write some code for me, this could
         | happen again except with AI instead of an outsourced team.
         | 
         | So far, it understands the requirements better and writes
         | pretty good code on average. Its unit tests are pretty good
         | too. It always requires some fixes and integration, of course.
        
         | soco wrote:
         | The question is, can IBM place those consultants at customers
         | and get paid for them? Then they're definitely not "BS jobs"
         | for IBM. They might be BS for the person interacting directly
         | with them, yes, but I see no reason for IBM to reduce them.
        
       | Imnimo wrote:
       | Even if it's true that 7,800 jobs at IBM could in principle be
       | replaced with AI, there's no way IBM has the AI chops to
       | accomplish that.
        
       | roncesvalles wrote:
       | >Krishna said in an interview he believes around 30% of about
       | 26,000 non-customer-facing positions, like human resources jobs,
       | could be replaced by AI over a five-year period--amounting to
       | about 7,800 lost jobs. HR duties like documenting employee moves
       | to different departments and writing employment verification
       | letters will likely be among the first rolled over to AI, Krishna
       | told Bloomberg. Jobs focused on interacting with customers and
       | developing software at the 260,000-worker strong company should
       | not be impacted in coming years, according to Krishna.
       | 
       | Source:
       | https://www.forbes.com/sites/nicholasreimann/2023/05/01/ibm-...
        
         | hgsgm wrote:
         | The names tasks are _already_ automated _without_ AI.
         | 
         | Who need a generative LLM text to print a _receipt_?
        
           | roncesvalles wrote:
           | Starkly reminiscent of blockchain. Many "blockchain problems"
           | were really just software problems. Coincidentally, IBM also
           | went all-in on blockchain before quietly abandoning it
           | sometime last year.
           | 
           | IBM seems to be run by very gullible people.
        
       | hinkley wrote:
       | Now IBM will be able to create solutions so complex that even
       | their own people don't understand them.
        
         | anttiharju wrote:
         | Idk how fair that is but reminded me of the email fiasco some
         | time ago: https://news.ycombinator.com/item?id=27706128
        
       | linksnapzz wrote:
       | Wow. Finally, Watson can replace the ppl. you get in the first
       | five levels of phone support for hardware. Then again, they could
       | be outsourcing it to Amazon.
       | 
       | "Alexa...why won't my mainframe IPL?"
        
       | patwolf wrote:
       | Perhaps they're trying to create FUD around AI destroying jobs
       | with the hopes that governments will restrict AI development.
        
       | Ologn wrote:
       | As has been posted in a few submissions today (including one of
       | my own) - Chegg stock lost half its value _today_ after
       | announcing how ChatGPT is affecting its business. Pearson stock
       | tanked today too. Meanwhile Nvidia stock hit its 365 day high
       | yesterday.
        
       | afrcnc wrote:
       | [dead]
        
       | t43562 wrote:
       | IBM felt to me like the last holdout of the shiny shoed salesmen
       | when I briefly worked for them. Before the internet and big tech
       | companies with leaders who were theoretically technical there
       | were the companies dominated by salesmen because selling was the
       | critical part.
       | 
       | I imagine that getting a board to spend a lot of money on some
       | project is hard and you need the support of the kind of people
       | that can influence board members.
       | 
       | So to get your project past a lot of people who basically don't
       | respect or believe in nerds you had to hire a company with non-
       | nerdy salesmen to back you up.
       | 
       | i.e. the entire thing is social. And just because the nerds (us)
       | have trounced them for the last N years, it doesn't mean that the
       | world has converted into 100% nerd. Shiny shoed salesmen are
       | probably still quite necessary.
       | 
       | I joined as part of an acquisition. I am probably biased but they
       | spent a year making the product multilingual and not fixing
       | anything. Everyone knows the name of the Open Source knock-off of
       | that product but not the name of the product anymore. It's
       | probably still there taking almost no investment of effort.
       | 
       | So I got the impression that IBM is a company where software goes
       | to live out its old age and die. I think of Redhat (perhaps
       | unfairly) with their super complicated Linux distribution which
       | must be a nightmare to maintain because it does so many things
       | and needs to keep long compatibility guarantees. I'm not
       | expecting any innovation whatsoever from them. Perhaps this is
       | very unfair and ignorant of me. I'm happy to be corrected.
        
         | Gooblebrai wrote:
         | How do you think selling is being handled nowadays that the
         | nerd percentage has increased within the companies?
        
       | jillesvangurp wrote:
       | IBM as a company barely makes sense at all at this point. They
       | are a very large and a former tech company that mostly coasts
       | along on doing expensive consulting projects around me-too clones
       | of things that other people have invented just so they can still
       | pretend to be a tech company. So you can do things with AI,
       | cloud, and databases with them. But they aren't really leaders in
       | any of that for a long time. And having been exposed to some of
       | that stuff, they aren't very good at it even but they can still
       | get some things done. They still have lots of ancient tech from
       | last century that they support of course. But mostly a new
       | company starting their business today would have very little
       | reason to engage with IBM on anything. There's very little that
       | they do that you can't get cheaper and better elsewhere.
       | 
       | So, IBM using this opportunity to cut down their own org tree a
       | bit more and "replace it with AI" (or simply drop some people) is
       | not unexpected. Because consulting related to doing exactly that
       | is probably what they'll be selling a lot for the next few years.
       | Basically, as world + dog is trying to figure out how to fit AI
       | into their businesses, consulting related to that is going to be
       | booming. And IBM is a consulting company. A lot of their previous
       | efforts are actually powering the backoffice of course. So now
       | that AI is going to replace all of that, that basically means
       | there is going to be a lot of consulting happening as to how that
       | would work. So that's a good business opportunity.
        
         | AlbertCory wrote:
         | It was always the case that IBM stuff was way overpriced
         | compared to alternatives but a senior manager who bought it
         | could rest easy, knowing that if he called and complained,
         | they'd be right on it. Even 10 years in the future, they'd be
         | right on it.
         | 
         | That's worth something to some people, who really don't give a
         | shit about technology and just want the problem solved.
        
           | flavius29663 wrote:
           | exactly. As I heard, google can be pretty bad at support, for
           | example. Better tech does not mean better experience overall
        
           | swexbe wrote:
           | Now when they call I guess they'll be directed towards the AI
           | chat bot helpline :)
        
             | AlbertCory wrote:
             | Yup. Never underestimate the ability of middle managers to
             | zero in on the company's main competitive advantage and
             | wipe it out with cost-cutting, e.g.
             | 
             | "We have a great beer customers love? Great, now we're
             | going to use cheaper ingredients. They'll never notice."
             | 
             | "We have great Mexican food, because everything's made
             | fresh on-site? Great, now we're going to shift to a central
             | commissary."
        
           | t43562 wrote:
           | Software for people who don't care about software! Personally
           | I think if you don't care about something it will be bad.
           | 
           | This is great for small companies and startups - if the
           | bigger ones did things properly how could anyone compete?
        
             | AlbertCory wrote:
             | Exactly! They're creating a Quality Umbrella.
             | 
             | "if you don't care about something it will be bad" -- maybe
             | to you. To them, it's not causing any problems that they
             | care about.
        
         | manicennui wrote:
         | You have no idea what you are talking about. IBM does more
         | cutting edge research than the entire HN bubble combined. Hard
         | research like materials science and semiconductors.
         | 
         | Consulting is less than a third of their revenue and regardless
         | of how you feel about consulting, it seems kind of idiotic to
         | claim that this "barely makes sense at all at this point". Are
         | the only companies that make sense the ones that work on fad
         | bullshit that makes the front page of HN?
        
           | [deleted]
        
           | agumonkey wrote:
           | This is the strange side of IBM. Very muddy and mild "normal"
           | software engineering, and all of a sudden, top 3 (maybe top
           | 1) Quantum Computing research.
        
           | LawTalkingGuy wrote:
           | You can't hire their research arm.
           | 
           | > regardless of how you feel about consulting
           | 
           | It's a matter of how well they do it. They're not known for
           | creating customer value.
           | 
           | > Are the only companies that make sense the ones
           | 
           | ... who don't lay off entire arenas full of people and
           | discuss stupid platitudes like replacing them with AI.
           | 
           | Pretty much. Management's messaging around this was so
           | delusional - "replace with AI" - that it's obviously a stock
           | play from a company desperate to cut losses, not a positive
           | statement from a going concern.
        
           | rybosworld wrote:
           | They have seemingly 1000 products so it's definitely not fair
           | to apply experiences with one of those, to all of the others.
           | 
           | That said, I've hated the handful of IBM software products
           | I've needed to use.
           | 
           | Another anecdote: I've never met a fellow developer that
           | spoke highly of IBM. That includes the folks who used to work
           | there.
           | 
           | I think it's remarkable how rare it is to meet someone that
           | speaks highly of the company. Companies don't usually achieve
           | such reputation without reason.
        
             | skeeter2020 wrote:
             | For a company that's done so much tech, and had such a huge
             | impact on the computer industry, there are very few "true
             | blue" IBMers who you can hold up as engineering pioneers.
             | Tehy've always been bog-standard salesmen.
        
             | TigeriusKirk wrote:
             | My college roommate has worked for IBM his entire career,
             | over 30 years. He loves it there, obviously, and never
             | seriously considered leaving.
        
               | mynonameaccount wrote:
               | He doesn't need to consider it, IBM will consider it for
               | him
        
             | gjadi wrote:
             | "There are two types of companies: the ones people complain
             | about, and the ones nobody has heard of."
        
               | makeitdouble wrote:
               | In which camp do you put TSMC ?
        
               | fallingknife wrote:
               | Nobody has heard of. Ask people outside of tech and I bet
               | <10% have heard of this company.
        
           | hammyhavoc wrote:
           | This is without even getting into projects under NDA.
        
           | garbagecoder wrote:
           | bro, I'm not holding my breath for the next Benoit Mandelbrot
           | to come out of today's IBM. The comment above might have been
           | hyperbolic, sure, but IBM isn't the omnipresent Goliath it
           | once was. Maybe it's for us older folks that the comparison
           | rings more true.
        
           | acomjean wrote:
           | Former IBM Research employee here (At the turn of the last
           | century, and I did database stuff for them, not research).
           | They spent 6 billion dollars a year on research. They had a
           | chip fab in my building (Yorktown NY) had chemists,
           | physicist, mathematicians... The really seemed to be
           | struggling to try and turn that R&D into profits though.
           | 
           | The hot new thing at IBM was "global services" consulting.
           | Since I left they've sold their chip business, laptop
           | business and really doubled down on consulting..
        
           | sidewndr46 wrote:
           | Sure, those 24 consecutive quarters of revenue decline under
           | Rometty is an obvious indication of cutting edge. Cutting
           | edge research on how to turn investors money into into option
           | traders profits.
        
             | abakker wrote:
             | I'd point out at that Ginni Rometty was a bad CEO, but that
             | doesn't mean that people there didn't do good research.
             | Like, they're pretty unrelated. Research and Development is
             | notoriously hard to commercialize. Over here in HN land, we
             | just say that product market fit is poor or that products
             | didn't get traction, but those are just as akin to R&D as
             | anything.
             | 
             | A better model was that Rometty was not good at choosing
             | what to fund and which bets to make. kinda a failed VC
             | fund.
        
               | sidewndr46 wrote:
               | What good is a R&D performed that can't be
               | commercialized? To me, that is just good research
               | followed by bad development. No one investing in IBM is
               | expecting it to be a public works project.
               | 
               | Lookup the saga of HP's memristor followed by "The
               | Machine" for a similar story.
        
               | TedDoesntTalk wrote:
               | > What good is a R&D performed that can't be
               | commercialized?
               | 
               | Then I guess we can throw out Xerox Parc's NLS because
               | they never commercialized "windows, hypertext, graphics,
               | video conferencing, the computer mouse, word processing,
               | dynamic file linking, revision control, and a
               | collaborative real-time editor." They were commercialized
               | by others later on.
               | 
               | https://en.wikipedia.org/wiki/The_Mother_of_All_Demos
               | 
               | We can also throw out most psych, social science,
               | archeology, and history R&D, too.
        
               | fallingknife wrote:
               | Would love to know what the last major breakthrough in
               | social science / psych R&D was.
               | 
               | Archeology / history, on the other hand, definitely have
               | some pretty awesome finds.
        
               | willcipriano wrote:
               | > We can also throw out most psych, social science
               | 
               | Yes.
        
               | anthk wrote:
               | First at all, they had to be called 'sciences'. They
               | aren't.
        
               | pinewurst wrote:
               | NLS came from SRI not Xerox PARC. NLS was in fact
               | commercialized and sold by Tymshare.
        
               | smcin wrote:
               | https://en.wikipedia.org/wiki/NLS_(computer_system)
               | 
               | Fun fact: funded by ARPA
        
               | dralley wrote:
               | Also 2000 years of Mathematicians talking about Prime
               | Numbers before someone came up with the idea of
               | cryptography using prime numbers.
               | 
               | And the laser, which took a few decades to find an
               | application.
        
               | 6510 wrote:
               | > What good is a R&D performed that can't be
               | commercialized?
               | 
               | It attracts playful wizards. If you get enough of those
               | no amount of zombies can beat them.
        
             | pixl97 wrote:
             | Income and cutting edge technology are at best orthogonal
             | to each other. Now I'm not saying that IBM has cutting edge
             | technology, I'm just saying that a ponzi scheme that
             | profits 24 months in a row is cutting edge under your
             | definition.
        
           | tootie wrote:
           | IBM also bet the farm on AI about 10 years ago and belly-
           | flopped. Their Watson AI suite was pretty advanced and they
           | famously beat Ken Jennings at Jeopardy, but they didn't get
           | vary far making their tools practical or profitable. And now
           | they've just been crushed by OpenAI. I wonder if the subtext
           | to their announcement is that they're ditching their entire
           | AI department and buying services from OpenAI instead.
        
           | Upvoter33 wrote:
           | I think the true thing is that IBM has ceased to be a leader
           | in Computer Science. They used to be! But they gave that up
           | long ago, and have resorted to various publicity stunts
           | (e.g., remember Jeopardy?). But sure, they may be a leader in
           | materials and semiconductors (though honestly I have no idea,
           | that's not my space).
        
             | piyh wrote:
             | They're cutting edge on quantum computing, can't think of
             | anything more computer science than that.
        
               | elorant wrote:
               | And what are the real life applications of quantum
               | computing?
        
               | bawolff wrote:
               | There are quite significant applications related to
               | simulating certain quantum processes.
               | 
               | However everyone is still pretty far off from that.
        
               | gitfan86 wrote:
               | So they say. Remember Watson? Whatever came of that? IBM
               | is PR and overpriced IT outsourcing.
        
             | jsight wrote:
             | People mock them for that Jeopardy thing, but that would
             | have been the perfect first move to offering something like
             | Watson as a service.
             | 
             | They could have built it over time to offer real assistance
             | to knowledge workers with a real revenue stream.
             | 
             | But that would have required vision and foresight.
        
               | local_crmdgeon wrote:
               | That's exactly what it was for, but it was basically a
               | fraud:
               | 
               | https://www.nytimes.com/2021/07/16/technology/what-
               | happened-...
        
               | juve1996 wrote:
               | They did and it failed miserably.
        
               | SoftTalker wrote:
               | The problem is that "Watson" wasn't a real thing, it was
               | just a name they gave to any solution they were trying to
               | sell.
        
             | sgt101 wrote:
             | [flagged]
        
               | rerx wrote:
               | Lyrics by Chat-GPT?
        
               | sgt101 wrote:
               | nahh - poor human generation
        
             | dlevine wrote:
             | [flagged]
        
         | pulse7 wrote:
         | Unlike many other tech companies they provide unprecedented
         | backwards compatibility which makes a very solid foundation for
         | their customers... There don't do "automatic-updates" which
         | break software like Microsoft is doing with Windows...
        
         | rst wrote:
         | IBM is a bunch of businesses, some of which still likely make
         | sense -- their mainframe hardware line (S/360 successors,
         | currently branded as z/System), and associated products, are
         | still actively developed, and very likely profitable,
         | considered on their own. But that may not be enough to carry
         | the rest of the business.
        
         | sys_64738 wrote:
         | IBM lost its way in the 90s and was overrun by startups which
         | became massive. Nobody wants to work for IBM as it's kiss of
         | death to your CV.
        
         | hinkley wrote:
         | IBM's MO now, especially for the Global Services arm, is Dazzle
         | Them With Bullshit.
         | 
         | They come up with solutions so baroque that it's exhausting
         | even to hear them talk about it. So you just hire more IGS
         | people to take care of the problems they created. It's a
         | racket, based on them literally not making sense.
        
         | Frost1x wrote:
         | Keep in mind that a lot of B2B transaction use in tech is about
         | passing responsibility and liability. Executive or director
         | somewhere has to solve this internal problem. IBM claims they
         | solve it and provide some degree of guarantee. You're now able
         | to pass that problem, responsibility, and liability off by
         | pointing to the contract and saying legal pursuit is an option.
         | Obviously this strategy isn't great from a business
         | perspective. If the problem is actually critical to the
         | business function, simply having a hired scapegoat to complain
         | and point at doesn't help you get past that problem.
         | 
         | If you're this massive inertial machine and the problem is to
         | some degree artificial and a waste of internal resources but
         | someone thinks it isn't, having someone like IBM on the hook
         | gives credibility to the argument that they did their due
         | diligence to solve the problem. Business at scale has a lot of
         | childish fingerpointing. "No one ever got fired for
         | hiring/buying IBM" as the saying goes.
        
           | htrp wrote:
           | as barney from himym says ... PLEASE
        
         | roncesvalles wrote:
         | IBM got to this point for a very basic reason - they don't pay
         | well.
        
         | aflag wrote:
         | That's a very cynical view. It might be true, but I hardly
         | think they were just waiting for the perfect opportunity. If it
         | made business sense before, they would've already been halting
         | their hiring.
        
           | jillesvangurp wrote:
           | They've been going through cycles of doing that for many
           | years. Their head count has dropped by about a third in the
           | last decade. It peaked at 460K people in 2012 and they are
           | now closer to 340K. So -120K people in ten years.
           | 
           | https://www.macrotrends.net/stocks/charts/IBM/ibm/number-
           | of-...
           | 
           | What they just announced is a relatively minor round.
        
             | bonzini wrote:
             | That source doesn't seem too accurate, 2020 is shown as a
             | decrease but it's when RH was acquired, and 2021 or 2022
             | should have had a -90K from the Kyndryl spin off.
             | 
             | Also I am not sure if the 2014 decrease is also related to
             | the formation of GlobalFoundries but I couldn't right away
             | find news about a -80K layoff that year.
        
           | wesapien wrote:
           | A lot of corporations are replacing humans jobs instead of
           | enhancing them with new tech like what the tech gurus say
           | during their TED talks about the benefits of X tech. Another
           | reason to flip cars.
        
             | qualudeheart wrote:
             | Smart Money flips houses. The Smartest Money flips GPUs.
        
               | mitjam wrote:
               | Smart Money flips houses. The smartest money flips bits.
        
               | ThorsBane wrote:
               | The smartest money flips the output of the GPUs, more
               | precisely. Flipping GPUs is just a side project.
        
         | realusername wrote:
         | The irony of that is they are probably going to use AI services
         | of competitors to do that despite pioneering the marketing on
         | it for years, thus closing the loop.
        
           | jillesvangurp wrote:
           | Their in house stuff is mostly based on OSS anyway. There
           | isn't a whole lot of IBM proprietary tech that they have to
           | bring to the table anyway. I wouldn't be surprised to see
           | them do some acquisitions to buy some street credibility
           | though.
        
           | anonylizard wrote:
           | There's nothing ironic about it. They invested only in the
           | marketing of AI, but not in the serious R&D of it, pretty
           | sure internally they never believed in their own AIs. Plus
           | they got the publicity benefit from Watson, which is
           | important for a consulting company.
        
             | OscarTheGrinch wrote:
             | IBM had / has an army of sales types running around trying
             | to insert Watson into health care, always reminded me of
             | the Dick Jones character from Robocop trying to pedal the
             | fundamentally flawed ED-209: "I had a guaranteed military
             | sale with ED209! Renovation program! Spare parts for 25
             | years! Who cares if it worked or not!"
             | 
             | Such an ethically questionable decision, trying to push
             | unproven / non-functional tech into life or death decision
             | making.
        
               | dagw wrote:
               | _trying to insert Watson into health care_
               | 
               | They were trying to insert Watson into everything. I used
               | to work at a company that worked with building management
               | systems and we had Watson sales people all over our
               | senior managers trying to get 'collaboration' projects
               | going.
        
         | 1970-01-01 wrote:
         | IBM is a company in the same way Hawaii is a state. There's a
         | lot of great of stuff going on, most of it is done "at the
         | other island" and a lot of the stuff will be consumed by a live
         | volcano without anyone really noticing.
        
       | pulse7 wrote:
       | I think that AI is just an excuse here... They wanted to cut jobs
       | anyway but they say AI is the cause (which is not), just to be
       | "in trend"...
        
         | ep103 wrote:
         | IBM lays off 10% of workforce is literally a yearly headline
         | 
         | As are IBM sued for age discrimination, and IBM closes product
         | line
        
       | retrocryptid wrote:
       | IBM is still alive? Hunh. You learn something new every day.
        
       | JCM9 wrote:
       | IBM is known for its marketing BS over "AI" (see the previous
       | fiasco surrounding the trail of unfulfilled hype with Watson) but
       | this one really takes the cake.
       | 
       | IBM has long been struggling. They could release a press release
       | saying they're pausing hiring because businesses are
       | underperforming. Or they could play the news cycle and say it's
       | because of how awesome their "AI" is. Interpret that as you wish.
        
       | rchaud wrote:
       | Remember when IBM was claiming all kinds of imminent
       | breakthroughs in healthcare via their Watson AI project? Sad that
       | they have to now resort to digital outsourcing to pump the stock
       | price.
        
       | mouzogu wrote:
       | nice way to try and pump your stock price.
       | 
       | similar to that google guy who left because Google's AI is about
       | to become a sentient, nice little boost to the retirement fund.
        
         | hgsgm wrote:
         | He said he left because it's dangerous, not sentient.
        
           | Dr_Birdbrain wrote:
           | I think parent comment was talking about Lemoine, who never
           | claimed the AI was dangerous, but rather that it was sentient
           | and not being given the rights it deserved.
        
       | retrocryptid wrote:
       | I am sad J. G. Ballard is no longer with us to comment on IBM's
       | plan.
       | 
       | IBM is replacing humans, who can identify an exceptional events
       | which weren't anticipated by planners, with AI, which only
       | regurgitates past training data.
       | 
       | I'm sort of imagining IBM human resources department now as some
       | hellish mashup of Ionesco, Nietzsche and Ballard (with a piquant
       | dollop of THX 1138 to provide that absurdist, institutionalized
       | aroma IBM seemed to love.)
       | 
       | At least the TVA was smart enough to recruit biological entities
       | to run it's bureaucracy.
        
         | blacksmith_tb wrote:
         | Hmm, all my experiences with the old, more-human IBM (randomly
         | powering off VMs, randomly breaking the UI for cloud admin,
         | etc.) have been pretty much Kafka all the way, so maybe this
         | will be an improvement (though not for the 8K employees who
         | will be replaced).
        
           | retrocryptid wrote:
           | I can only talk to my experience at IBM on-and-off from '89
           | through '94. There were many things wrong with IBM, but at
           | least through '94, internal processes were fairly solid.
           | Compare that to my current firm, where we wasted three days
           | of employee time trying to figure out how to get Workday to
           | properly render the text area I was supposed to use to
           | provide employee evaluations. (This doesn't include the days
           | it took to find someone in HR who understood what Workday was
           | and had an idea who in the company managed it. It turns out
           | that employees are given access roles in Workday (not really
           | a bad idea) but our humans didn't understand that only people
           | with specific roles could create surveys with form elements
           | regular users could fill in. We apparently fired the people
           | who knew that during the last round of layoffs.)
        
       | RobLach wrote:
       | If jobs are being replaced by AI I would think a company in IBM's
       | position would be hiring to help offer those transitions as a
       | product.
        
       | [deleted]
        
       | justinzollars wrote:
       | I wonder how long our jobs last?
        
       | gumballindie wrote:
       | Nah, they are letting 7800 people go because of poor business
       | practices. The AI thingie is to save face.
        
         | willis936 wrote:
         | Strangely I think they would have saved face better if they
         | said "we are letting 7800 people go due to poor business
         | practices" rather than some BS line about LLMs being ready to
         | replace humans.
        
           | gumballindie wrote:
           | IBM hasn't been making logical decissions recently (past
           | decade or so) and this fits the pattern. It's actually rather
           | embarassing they even mention the term AI considering they've
           | been playing with it for a while and nothing came out of it.
           | They should stick to low quality consulting and call it a
           | day.
        
           | jonas21 wrote:
           | Nah, you have to look at this from the perspective of IBM's
           | target customers. A bunch of Fortune 500 execs who can barely
           | use a computer are going to see this and say "That's
           | brilliant! Can you do the same thing for us?"
        
         | flangola7 wrote:
         | Source?
        
         | caporaltito wrote:
         | Also, their competitors are better at AI, they basically use it
         | to say they fire people because of their competitors.
        
         | sumoboy wrote:
         | Poor middle management, those should be the majority of the
         | people to let go.
        
           | oofta-boofta wrote:
           | That's literally every tech company. Middle managers, product
           | owners, project managers, etc can all go.
        
       | shahbaby wrote:
       | It makes sense. IBM is primarily a consulting company pretending
       | to be a tech company, run by business majors.
        
       | MR4D wrote:
       | From what I've read/heard from others, if they try and replace
       | those people with Watson-based AI, they'll need to hire another
       | 10,000 consultants to try and implement it.
        
       | fdye wrote:
       | This is just using the AI hype as cover to not get slammed by the
       | markets. If they came out and said "We are pausing hiring..." the
       | markets would rightly be like "Man they are screwed..."
       | 
       | Expect to see more of this from zombie companies in the future,
       | as long as they spend $20/mo on a ChatGPT subscription somewhere
       | they are probably not violating SEC disclosures either.
        
         | freetinker wrote:
         | This is spot on.
        
         | [deleted]
        
         | alfalfasprout wrote:
         | Exactly. As useful as ChatGPT is for a lot of menial tasks,
         | people give humans far too little credit.
        
         | trifurcate wrote:
         | > If they came out and said "We are pausing hiring..." the
         | markets would rightly be like "Man they are screwed..."
         | 
         | This hasn't been the case with the ongoing tech layoffs though?
         | Investors for the most part congratulate these companies for
         | diligently cutting costs in preparation of a recession.
        
           | theRealMe wrote:
           | That is the case for companies that overhired during the bull
           | market. IBM, on the other hand, has been losing employee
           | counts steadily for over a decade.
           | 
           | If a company that people are expecting to be losing relevance
           | does a layoff, it's still not a good sign.
        
             | tempest_ wrote:
             | I don't even properly know what IBM is now that they spun a
             | bunch of things off.
             | 
             | I guess they tossed all the services/consulting into
             | Kyndryl and everything else got to stay blue.
        
               | JAlexoid wrote:
               | They spun off only Global Technology Services, which was
               | only IT infrastructure consulting.
               | 
               | Most of the business consulting, including outsourcing
               | software engineering, is still with IBM.
        
           | golemiprague wrote:
           | [dead]
        
         | d--b wrote:
         | They don't even have to spend anything on ChatGPT, they can say
         | they're using Watson!
        
         | gitfan86 wrote:
         | Yes, they have done things like this before. IBM is good at PR.
        
         | kneebonian wrote:
         | You have to understand their competitive moat, DoD and
         | especially Pentagon contracts.
         | 
         | Most companies don't have the capitalization, runway or people
         | who are so badly broken as to go through the bidding process
         | for something like that.
        
           | treeman79 wrote:
           | Yep was at a small startup and the owner insisted we go with
           | IBM, over the protest of everyone. Months of work and we got
           | infrastructure moved over. Only to find out the stack we were
           | sold on was being sunset. Owner insisted we move to the new
           | stack. Month later we were on new stack. This happened twice
           | more.
        
         | qbasic_forever wrote:
         | Yep if you read what the CEO said the quote was that they
         | "could" replace workers with AI over five years and as the tech
         | improves. That's just pure speculation and bullshitting, like
         | when Elon said Tesla cars will be fully self driving vehicles
         | in five years. It's market pumping talk from a company with a
         | vested interest in selling "AI" to enterprises.
        
           | RoyGBivCap wrote:
           | [flagged]
        
             | hraedon wrote:
             | I mean, are they wrong? Elon promised coast-to-coast
             | summoning in 2016 with a time horizon of two years! there
             | were supposed to be a million telsa robotaxis by the end of
             | 2020!
             | 
             | Like, putting aside everything else, it had to have been
             | very obvious internally that neither of those goals were
             | plausible in that timeframe without miracles happening.
        
         | newswasboring wrote:
         | IBM is a public company, doesn't that mean they have to give
         | some details to shareholders? I would hope so, this is a big
         | ambitious plan, I hope they have to present an actual plan
         | somewhere. You can't just say stuff, right?
        
         | belter wrote:
         | But it seems Watson is concerned and looking for a new job...
        
         | zod50 wrote:
         | But the market has actually rewarded companies pausing hiring
         | and doing layoffs. In other words, if company is saving money
         | by reducing fixed salary costs, market appreciates that move.
        
       | drumhead wrote:
       | As its IBM we might see a first here, firing AI's.
        
         | abawany wrote:
         | you forgot the outsourcing stage: first the ai will be
         | outsourced to a rpi zero w running os/2, and then the product
         | will be cancelled.
        
       | admax88qqq wrote:
       | More likely they are just saying this to get in the headlines as
       | a "Look IBM is AI too" story.
        
       | susanasj wrote:
       | obviously AI is moving quickly, but every mainstream news article
       | about AI is incredibly gullible. Good time to be the Simpsons
       | monorail salesman but for AI.
        
       | jppope wrote:
       | Better Title: IBM announces scheduled bankruptcy in roughly ~3-5
       | years
        
       | rkagerer wrote:
       | Hah! Good luck with that.
        
       | kypro wrote:
       | I won't comment on whether this is good or even workable idea,
       | but I will acknowledge this announcement is kinda genius.
       | 
       | Playing into fears about AI replacing large segments of the
       | labour force in the coming years invites calls for regulators to
       | slow down their competition. While at the same time this
       | announcement makes investors happy because IBM is signalling that
       | they're looking to both cut costs and embrace AI.
        
         | jzb wrote:
         | This assumes that IBM is not serious about trying to replace
         | jobs, but is trying to make a strategic 3D chess move. I'm very
         | skeptical that this is the case.
         | 
         | But, let's say it is. It _might_ play well with investors, but
         | the idea that it 's going to spur regulation or legislation to
         | slow down AI development seems optimistic at best. That assumes
         | a government and elected officials who are looking out for
         | workers and not the investors who are going to be giddy about
         | this.
         | 
         | In the U.S., at least, government has been actively trying to
         | suppress wages and maintain higher levels of unemployment. Why
         | would this spur any action to slow down AI?
        
           | agloe_dreams wrote:
           | I would note that IBM is like 80% middle management. At this
           | scale, one could easily make an AI tool that generates
           | powerpoint presentations from an email, present it to a
           | different AI that can create an email with the bullet points
           | that can then be read by another AI...
        
       | wunderland wrote:
       | The original story from Bloomberg:
       | https://www.bloomberg.com/news/articles/2023-05-01/ibm-to-pa...
        
       | [deleted]
        
       | SilverBirch wrote:
       | This is like how Kodak pivoted to crypto. It's chasing a short
       | term stock market bump at the cost of being _absolutely
       | bollocks_. Or maybe I 'm being unfair and they're smarter and
       | actually this is just a ruse to avoid more lawsuits for age
       | discrimination in their firing practices. Either way, it's more
       | of a sign that IBM is in trouble than AI is really breaking
       | through.
        
       | voxadam wrote:
       | Previously: https://news.ycombinator.com/item?id=35780706
        
       | dboreham wrote:
       | Could definitely replace the press release writing dept. with AI.
        
       | flenserboy wrote:
       | This is why companies should consider just doing things, and
       | then, if they work, point backwards to how great an idea that
       | was.
        
       | rob74 wrote:
       | > _More mundane tasks such as providing employment verification
       | letters or moving employees between departments will likely be
       | fully automated, Krishna said._
       | 
       | ...and if some employees quit out of frustration about being
       | managed by AI (being  "moved between departments" at the whim of
       | an AI sounds pretty spooky to me at least), even better!
        
         | daniel_iversen wrote:
         | It says "moving" employees which maybe implies voluntary, so
         | "internal mobility" in other words which can create a lot of
         | admin (business need, cost centres, levels, specs, visas etc
         | etc). It'll perhaps be a while before the AI overlord runs the
         | entire company and just moves us at it's whim and treats us all
         | as Amazon Mechanical Turks[1] :)
         | 
         | [1] https://en.wikipedia.org/wiki/Amazon_Mechanical_Turk
        
         | AlecSchueler wrote:
         | I took it more to mean that the paperwork involved in the move
         | would be automated, rather than the decision to move.
        
         | lynx23 wrote:
         | I doubt there is much of a difference between typical brainless
         | human management, and AI management. Maybe AI is even better,
         | that is at least likely.
        
           | jzb wrote:
           | It won't be. AI will be trained on human input, after all.
           | And it will be even harder to appeal or reason against.
        
         | XorNot wrote:
         | I actually can't wait till I'm managed by AI. At least with an
         | AI there's the high probability it will get better. In fact
         | most likely it'll just be the same gradually improving system
         | which I can converse with for the rest of my career.
         | 
         | Whereas with human managers who knows? Maybe they're good,
         | maybe they're bad, it's a reset every time.
        
           | nullsense wrote:
           | If it's trained on data human managers then it'll just burn
           | you out and emotionally manipulate you into staying with the
           | company longer to maximize corporate profits.
           | 
           | ...or your life could become utopia. Who knows?
        
       | 0zemp2c wrote:
       | Its easy to make a headline by claiming AI will eventually
       | replace people you never intended to hire anyway
        
         | sammalloy wrote:
         | And strangely, they never replace CEOs, who earn more than 200
         | times what workers earn. One would think, that would be a
         | priority.
        
       | jmount wrote:
       | Gonna be funny watching IBM apply their consulting methodology to
       | themselves.
        
       | seu wrote:
       | AI will not replace humans. IBM's CEOs and managers will replace
       | humans with AI. Shareholders will force IBM to replace humans
       | with AI. Let us stop blaming the only thing that is _not_ making
       | any decision. Capitalism is a powerful idea that will kill the
       | same people that vouch for it.
        
         | jzb wrote:
         | This makes as much sense as "guns don't kill people, people
         | do."
         | 
         | AI tech is being driven by capitalism. The reason companies are
         | so eager to embrace it is to replace people. If you're in the
         | AI business or advocating for it, you're (at least in part) an
         | arms supplier for cutting jobs.
        
           | sitkack wrote:
           | The end goal is for The Board (maybe) and the shareholders to
           | be human. Everyone else can get replaced with automation.
        
         | qualudeheart wrote:
         | Managers will do every job.
        
           | [deleted]
        
           | ResearchCode wrote:
           | AI will do management.
        
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