Layoff at IBM: Severance package reduced to a month

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There have been several media reports since the evening of March 2, 2016 on the same. One tech website has reported that the retrenchment could be as big as one-third of the total workforce.

It’s a double whammy for some at IBM. First it was the decrease in severance package from six months to one, and then came the news about massive reduction of workforce in the US.

There have been several media reports since the evening of March 2, 2016 on the same. One tech website has reported that the retrenchment could be as big as one-third of the total workforce.

This development comes after a week of IBM’s declaration to its investors that there was absolutely no change or marginal change (less than one per cent) in the size of its workforce between 2015 and 2014. Though, as many as 70,000 employees bid adieu to the company during that period, but new hires have filled the void.

On the Facebook page of the website ‘WatchingIBM.com’, many people have posted their comments on this mass firing.

One comment reads: “After 41 plus years I got the call today. In how many more ways can they take from hard working IBM’rs? I was ready to go last year when they had the severance package. Why didn’t they do it then? We have been living and working with this ‘writing on the wall’ for years. What stings the most is the severance cut. But I have only heard of positive moves in the lives of everyone who is now an ex IBM’r. Praying for the same. Good luck to all who are caught in this today.”

Another comment read: “I am a GTS Strategic Outsourcing casualty of the mass firing today. My manager told me it was big and widespread, and I’d be hearing from a lot of people who will also be notified today. My official end date is May 31, 2016 (90 days) and the severance package is 1 month. I was encouraged to look for jobs inside IBM and was told that they are ‘plentiful’ and ‘open’. Even if I were to believe that, I’m not sure why I would stay, looking over my shoulder every month or so waiting for the IBM axe wielders to come for me again. I’m looking forward to moving on and leaving this nightmare behind me. I wish everyone good luck, whether you are staying or going. I’m not sure which group is going to need it more.”

The new severance policy is applicable to people who have lost their jobs or will be asked to go due to the elimination of a position or due to unsatisfactory performance.

IBM officials, though, have been quoted as saying that the news about layoff of one-third of the workforce is untrue and that the company still has 25,000 open positions.

1 COMMENT

  1. Ironic that a strategic outsourcing consultant who had worked to outsource jobs from other companies is complaining about a loss of his job.

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