IBM is reportedly conducting 'soft layoffs' within its Finance & Operations business unit by demanding employees relocate to specific hubs or face severance. Workers are being asked to live within 50 miles of Raleigh, North Carolina, or Poughkeepsie, New York, with limited exceptions. Those who refuse to comply risk losing their jobs, according to a source familiar with the situation. This strategy, described as a 'soft layoff,' aims to reduce headcount without the formal repercussions of traditional layoffs. The company is investing in emerging technologies like AI and consulting while downsizing Finance & Operations, citing cost-cutting measures.
IBM has begun what a source describes as a soft layoff for its Finance & Operations business unit, in the form of a return-to-office order.
Severance pay is said to be anywhere from three to six months, depending upon the duration of employment.This is specifically for the Finance & Operations group, which is viewed as a significant cost among Big Blue's senior executives, according to our source."AI will be implemented to replace people," our source said."Outsourcing and hiring fresh graduates will continue.
The RTO mandate comes with the expectation that employees show up in corporate offices at least three days per week, as implemented "People are being forcibly pushed out but in a way that does not look like typical layoffs to avoid public scrutiny," our source explained, noting that the tech giant is keen to avoid the perception that it's trying to get rid of older workers, an issue in numerous past lawsuits."It is also to divest from areas executives no longer see as strategic."
Business IBM Layoffs Return-To-Office AI Automation Finance Operations Cost-Cutting
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