- IBM financing and operations teams received an ultimatum
- The workers said they had to get closer or accept a pack of redundancy
- Expensive workers will be replaced by new recruits and AI
IBM applied a revised policy to return to the office among its commercial unit of finance and operations in the middle of what is called a “soft layout”.
Reports said the employees were informed that they had to move to get closer to the offices of Carolina from the north of the company or New York to comply with the new office work mandate.
Workers who prefer not to do so will have to leave the business, but they will be able to do it with a dismissal package of a value of up to six months, depending on the duration of their IBM.
IBM using RTO to put layoffs
“Managers are responsible for reaching out to their reports and asking them to move to Raleigh, North Carolina or Powhkeepsia, New York,” said a spokesperson The register. “They must be less than 50 miles from one of these sites. Otherwise, they will be offered a starting indemnity. »»
The finance and operations division would be an expensive unit for the company, but using artificial intelligence, new graduates and outsourcing, IBM hopes to reduce costs. The registerThe source confirmed: “AI will be implemented to replace people.”
IBM’s RTO mandate prompted employees to resign voluntarily, thus avoiding formal layoffs, hence the description of “soft layout”. Previously, the company faced allegations of discrimination during the promulgation of layoffs.
Two weeks ago, IBM CEO Arvind Krishna, said in the report on the results of the fourth quarter of the company: “Three years ago, we exposed a faster IBM vision and faster IBM and more profitable. I am proud of the work that the IBM team has done to meet or exceed our commitments. The quarterly and annual income increased by 1% from one year to the next. IBM hopes for the growth of revenues of 5% in 2025.
In the front, The register“S Source said:” The CEO said: “Thousands of people will be replaced by AI” and management is currently highly focused on the cuts and the slowdown in hiring. »»
Techradar Pro asked IBM to confirm its revised policy and the impacts of artificial intelligence on its workforce, but we did not receive an immediate response.
