The corporate world is being reshaped at a rapid pace. From Amazon to Accenture, companies are slashing thousands of jobs as they restructure around artificial intelligence (AI) and automation, reflecting a broader shift in how businesses operate. On Tuesday, IBM became the latest major employer to announce a significant reduction in its workforce as it pivots toward high-growth software and AI-focused areas, signalling a moment of uncertainty and heightened competition for younger professionals entering the job market, Reuters reports.
A rare note of optimism
Just a week before the announcement, IBM Chief Executive Officer Arvind Krishna had positioned himself as a rare optimist amid widespread layoffs, emphasising the company’s intention to continue hiring recent college graduates. Speaking to CNN, Krishna stated, “People are talking about either layoffs or freezing hiring, but I actually want to say that we are the opposite.” He added that IBM expected to hire more graduates over the next 12 months than in previous years.Krishna acknowledged that automation would inevitably lead to some reductions but framed the net effect as beneficial for the company’s workforce composition. An IBM spokesperson told Fortune that the layoffs would impact a “low single-digit percentage” of the global workforce. When combined with new hires, the company’s United States headcount would remain roughly stable. With around 270,000 employees at the end of 2024, even a one per cent reduction could affect nearly 2,700 workers, Fortune reports.
Why Gen Z might feel the pinch first
Although IBM has not specified which departments will be affected, early research suggests that junior roles are particularly vulnerable. Harvard University researchers have found that entry-level employment has declined sharply at firms adopting AI, a trend that could disproportionately affect Gen Z professionals.
The skills that will matter for Gen Z
For young professionals navigating this uncertain landscape, Krishna emphasised the importance of acquiring the right skills. “Skills of people are really important,” he told CNN, stressing that companies are increasingly seeking candidates with practical experience in AI and related technologies, rather than relying solely on years of experience. As Krishna explained to CNN, there is a strong demand for expertise in AI, quantum computing, and other advanced technologies that clients value.Hiring consultants echo this view. A senior managing consultant at Beacon Hill said that firms prefer candidates with hands-on experience in the tools being implemented and the ability to train in complementary skills, Fortune reports. Similarly, a Microsoft and LinkedIn report from last year found that 71% of leaders are more likely to hire less experienced candidates with AI skills over more experienced applicants without them.Yet, technical proficiency alone is no longer sufficient. Chief Executive Officer of automation firm Caddi, told Fortune that employers are seeking individuals who are not only knowledgeable but also curious, adaptable, and reflective about their use of AI. “That mindset makes the biggest difference,” he said.
5 lessons for Gen Z to stay ahead
Based on insights from Krishna and industry experts, young professionals can take several steps to remain competitive:
- Prioritise AI and emerging technologies: Gain practical experience with tools that are in active use within organisations.
- Develop a learning mindset: Continuous skill development is critical in a rapidly evolving landscape.
- Embrace adaptability: The ability to pivot and work across different teams or technologies will be invaluable.
- Demonstrate curiosity: Employers increasingly value those who actively seek to understand and apply technology thoughtfully.
- Balance technical skills with strategic thinking: Beyond proficiency, showing how skills solve real business problems sets candidates apart.
Turning uncertainty into opportunity
AI and automation are creating both challenges and opportunities. For Gen Z professionals, the key to thriving will not only be technical expertise but the ability to cultivate a mindset of curiosity, adaptability, and strategic insight. In a world where job titles and structures are evolving faster than ever, those who can align their skills with emerging needs will find themselves best positioned to succeed.
