I recently came across an insightful perspective shared by Arvind Krishna (arvindk@us.ibm.com), the CEO of IBM, regarding the recent wave of layoffs across various companies. He posits that these workforce reductions are not primarily a consequence of artificial intelligence replacing human jobs, but rather a direct result of excessive hiring that occurred during periods of accelerated growth IBM CEO Arvind Krishna says not due to AI, many companies are laying off but because they.
This observation from Mr. Krishna resonates deeply with me. It’s a reminder that economic cycles often lead to periods of exuberance, where businesses, perhaps fueled by optimistic projections or readily available capital, expand their workforce beyond sustainable levels. When market conditions shift, or growth plateaus, the inevitable rationalization follows. It's not about the inherent threat of new technology, but about the fundamental principles of resource allocation and strategic planning.
My Take:
The core idea I want to convey is this — take a moment to notice that I had brought up this thought or suggestion on the topic of efficient resource management and foresight years ago. In discussions about optimizing operations, such as the Blog Genie revamp Sanjivani , Last Saturday , I had a long discussion with Kishan re Blog Genie revamp – in following stages :, I envisioned a “PERPETUAL AI MACHINE with minimum or NIL human intervention.” While the context was automated content creation, the underlying principle was about creating highly efficient systems and ensuring that human resources are deployed thoughtfully and optimally. I had already predicted the challenge of needing lean, effective operations, and had even proposed solutions focusing on intelligent automation and strategic resource allocation. Now, seeing how things have unfolded with companies grappling with the consequences of overhiring, it's striking how relevant that earlier insight still is. Reflecting on it today, I feel a sense of validation and also a renewed urgency to revisit those earlier ideas, because they clearly hold value in the current context of workforce planning.
It highlights the crucial difference between reacting to immediate opportunities and engaging in long-term, sustainable strategic growth. While AI will undoubtedly transform the nature of work, blaming it solely for current layoffs might be missing the broader picture of corporate strategy and prudent management. We must look at how companies plan for growth, manage resources, and adapt to changing economic realities.
Regards,
Hemen Parekh
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