Where does it say those cuts were senior software developers?
Obviously they want new workers to use AI but I don't really see anything to suggest they're so successful with AI that they're firing all their seniors and hiring juniors to be meatbags for LLMs.
This just doesn't make any sense. Juniors + AI just does not equal seniors, except for prototyping greenfield projects. Who knows about 2 months from now, it moves fast and stuff, but not right now.
I suspect the gap is that you don't know enough about IBM's business model.
When something doesn't make sense, a very common cause is a lack of context: many things can be extremely sensible for a business to do; things which appear insane from an outsider's point of view.
Obviously they want new workers to use AI but I don't really see anything to suggest they're so successful with AI that they're firing all their seniors and hiring juniors to be meatbags for LLMs.