John Grainger Senior Vice President Notified by Memo
Draws 'Layoff Card' Amid Worsening IT Market Conditions
IBM has issued a final ultimatum to its employees, demanding that they move near the office by early August and return to in-person work, or leave the company. This strong measure is seen as a response to the slow progress of office returns since the end of the COVID-19 pandemic. Some suspect that the suspension of remote work is being used as a pretext for workforce reductions, which is expected to intensify internal resistance among employees.
According to Bloomberg on the 29th (local time), John Granger, Senior Vice President of IBM Consulting, sent a memo to employees in the U.S. on the 16th stating, "Managers must immediately report to the office or client sites at least three days a week, regardless of their current work location."
He explained, "Except for exceptional cases such as medical issues, remote workers who live at a distance that makes physical commuting impossible must relocate near an IBM office by early August," adding, "Office attendance data will be used to evaluate individuals and will be shared with HR."
He emphasized, "Managers who do not agree with this must separate from IBM." In other words, if they cannot accept this, they are expected to leave the company.
An IBM spokesperson also stated, "IBM focuses on creating a work environment that balances flexibility and face-to-face interaction to enhance productivity, innovation, and better service to customers," adding, "Based on this approach, executives and HR require employees to come to the office at least three days a week."
IBM has been urging employees to return to the office since the end of the COVID-19 pandemic, but progress has been slow, leading to increasingly strict policies. Arvind Krishna, IBM’s CEO, also said in an interview with Bloomberg last May, "Those who do not come to the site will have fewer opportunities for promotion."
Some suspect that the shift away from remote work is being used as a pretext for large-scale layoffs. IBM has been downsizing its organization over recent years under the pretext of focusing on software and services, and also conducted layoffs last year. Additionally, it sold off management infrastructure, weather, and health businesses to concentrate on artificial intelligence (AI).
James Kavanaugh, Chief Financial Officer (CFO), recently explained during an earnings announcement, "IBM expects to reduce jobs through workforce restructuring on a scale similar to the plan announced last year to cut 3,900 employees," adding, "Reducing real estate usage is part of IBM’s ongoing efforts to expand margins."
As suspicions grow that large-scale layoffs will continue under the pretext of remote work suspension, significant backlash from IBM employees is anticipated. Previously, Amazon employees also protested the 'three days a week office work' policy by striking in May last year. Bloomberg predicts that labor disputes over remote work and layoffs will become a major issue among leading IT companies going forward.
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