IBM CEO Arvind Krishna has pushed back against the widespread belief that artificial intelligence (AI) is the main force behind the ongoing wave of layoffs in the tech industry. Instead, he says the real cause is massive over-hiring during the pandemic, calling the current cuts a "natural correction."
Krishna acknowledged that AI will eventually displace some jobs, but stressed that most companies cutting staff today are doing so because they expanded too rapidly between 2020 and 2023. In an interview with a foreign media outlet, he said companies had aggressively grown their workforce during the lockdown years. "If you look at the total employment numbers, I think people gorged on employment... during the pandemic and the year after," Krishna explained.