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IBM Businesses IT

IBM Orders US Sales To Locate Near Customers or Offices (theregister.com) 30

IBM is mandating that U.S. sales and Cloud employees return to the office at least three days a week, with work required at designated client sites, flagship offices, or sales hubs. According to The Register, some IBM employees argue that these policies "represent stealth layoffs because older (and presumably more highly compensated) employees tend to be less willing to uproot their lives, and families where applicable, than the 'early professional hires' IBM has been courting at some legal risk." From the report: In a staff memo seen by The Register, Adam Lawrence, general manager for IBM Americas, billed the return-to-office for most stateside sales personnel as a "return to client initiative."Citing how "remarkable it is when our teams work side by side" at IBM's swanky Manhattan flagship office, unveiled in September 2024, Lawrence added IBM is investing in an Austin, Texas, office to be occupied in 2026.

Whether US sales staff end up working in NYC, Austin, or some other authorized location, Lawrence told them to brace for -- deep breath -- IBM's "new model" of "effective talent acquisition, deployment, and career progression." We're told that model is "centered on client proximity for those dedicated to specific clients, and anchored on core IBM locations for those dedicated to territories or those in above-market leadership roles." The program requires most IBM US sales staff "to work at least three days a week from the client location where their assigned territory decision-makers work, a flagship office, or a sales hub." Those residing more than 50 miles from their assigned location will be offered relocation benefits to move. Sales hubs are an option only for those with more than one dedicated account.

[...] IBM's office policy change reached US Cloud employees in an April 10 memo from Alan Peacock, general manager of IBM Cloud. Peacock set a July 1, 2025, deadline for US Cloud employees to work from an office at least three days per week, with relocating workers given until October 1, 2025. The employee shuffling has been accompanied by rolling layoffs in the US, but hiring in India -- there are at least 10x as many open IBM jobs in India as there are in any other IBM location, according to the corporation's career listings. And earlier this week, IBM said it "is setting up a new software lab in Lucknow," India.

IBM Orders US Sales To Locate Near Customers or Offices

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  • They're, I fixed the headline.
    • by Anonymous Coward

      The myth of cutting middle Management got started by IBM because they wanted to fire older workers without getting in trouble for age discrimination.

      It doesn't make sense unless you consider how many older workers are out there. Sure would be nice if we hadn't just gutted the ability to enforce regulations and worker protections. Something I didn't say was that the older workers are often complicit in this behavior. They like the fact that they're higher up on the totem pole even if overall it negatively im

      • That's why there's such a strong divide between younger workers who want to work from home and older workers who want to go into the office.

        I'm an "older worker" and fuck all if I want to go into an office for anything, ever.

        I've been remote for years and would never, ever go back to commuting to some *&$@#! building to work. I've set foot in my last office, period.

        I don't know what younger workers want but it's probably something like fair wages, decent working conditions, insurance, you know- radical stuff.

  • by Anonymous Coward
    The only time I hear about IBM is when they do their annual layoffs of 30K US-based employees.
    • Indians work for less, are more compliant and generally more educated.
      • Your first two points are valid but the third, no what you really meant to say is there paper mill degree was easier/cheaper to get without needing to know anything relevant for the H1B six month contract job.

        • by Junta ( 36770 )

          The thing is he might be correct, but *not* for the people the companies are outsourcing to.

          Generally speaking in the offshoring destinations, you have some solid tier of software developers who won't go anywhere near offshore work.

          Then you have the diploma mills to let businesses rationalize that they hired credentialed people while having absolute garbage.

          On the occasion someone in an offshoring context is actually any good, they have quit for better pay inside of 3 months.

      • Let's put it differently, help you out here.

        0) Long-tenured employees should have knowledge, experience, and wisdom that makes them more valuable and productive than mere replacements.

        1) If the work does not require or benefit from that tenured advantage, then it is in the organization's best interest to reduce costs by replacing the (likely) more expensive long--tenured resource with a less expensive but functional resource. You know, I expect, that this is the logic behind replacing equipment, material, o

    • Yes, but only to government.

    • Their mainframes still run something like 90% of the world’s financial transactions. If you used a credit card today then you used a mainframe.

  • they have been doing mass layoffs for decades.

    • by taustin ( 171655 )

      Because the mass hirings they alternate with the mass layoffs aren't newsworthy, so you don't hear about them.

    • Well Tech companies had been less than strategic around their hiring and firing practices for the past decade or two.

      They try to hire as many people as possible, give them some work to keep them busy. Just so these employees will not be working for their competitors who are trying to hire them for the same reason and give them busy work. Then when money gets tight, they dump them, not realizing that that busy work they were one actually became something profitable for the organization.

      They leave, some sta

  • They have a point (Score:4, Insightful)

    by fatwilbur ( 1098563 ) on Friday April 18, 2025 @05:32PM (#65315847)
    Though IBM is shit and part of this will no doubt provoke the political rage arguments around WFH , I’ve worked worked in IT for decades across many technical and customer management roles and lemme tell you

    Humans are humans. In terms of getting your contract re-signed, extended, or increased, literally everything else is a far, far, far second to going to meet with the contract signer face to face on a regular basis. Take them out for lunch. Ask about their kids and remember their hobbies. Teams or Zoom video calls don’t cut it - many of the IT nerds don’t really understand this. All of your technical masterpieces and failures matter so far less than the human relationship you either maintain or you don’t.
    • That means that salespeople are best on the road seeing clients in their home territory, not sitting in a home office, in front of a computer or in meetings with middle managers. Pulling salespeople back to the office will probably reduce sales performance, not enhance it.

      This means that IBM is expecting a MAJOR sales drop in the coming months and, yes, this is a stealth layoff.

      I’m not sure how I feel about stealth layoffs. In many ways, they’re more humane than the standard in-your-face
      • by kick6 ( 1081615 )

        That means that salespeople are best on the road seeing clients in their home territory, not sitting in a home office, in front of a computer or in meetings with middle managers. Pulling salespeople back to the office will probably reduce sales performance, not enhance it. This means that IBM is expecting a MAJOR sales drop in the coming months and, yes, this is a stealth layoff. I’m not sure how I feel about stealth layoffs. In many ways, they’re more humane than the standard in-your-face layoffs.

        I think you're making the mistake that these people still live in their sales territories, and just aren't coming into the office in that location. I bet what is happening is that all of the California sales team moved to Texas because it's cheaper when they were allowed to be remote.

      • That means that salespeople are best on the road seeing clients in their home territory

        Nah, not necessarily. Best salesman I ever dealt with - Andy - lived in Phoenix, while I lived in NY. Never actually met the guy until I took my son and nephew on a cross-country road trip, and we swung in to visit Andy at his home. Andy and the boys had shared interests in music, so it wasn't a creepy sales call; they spent most of the time jamming on guitars. But dealing with Andy in sales was ezpz. It's almost like he knew what I needed before I did, and didn't push crap I didn't need. Price was a

    • As someone who's been in the workforce for 40+ years, MOD PARENT UP.

      100% truth- the simplest 'personal' connection you have is worth its weight in gold.

      Yes, call 'em up once in a while just to "check in" and then just shoot the shit and schmooze with them a bit. It's the same thing with job interviews: gently force a human-to-human connection with the interviewer even for a few moments, and that's 90% of your grade right there. Break that 4th wall and be seen as another human, an actual person. It'll help

    • many of the IT nerds don't understand this

      I think many IT nerds are painfully aware that some people schmooze through life. I may eat these words, but I'm so glad I solve customers problems through understanding how everything works rather than by schmoozing.

  • IBM was a technology leader
    Now, all they care about is having the sales staff close to the customers and the tech workers in India
    I miss the old IBM

  • by sizzlinkitty ( 1199479 ) on Friday April 18, 2025 @05:51PM (#65315879)

    The government needs to put tariffs on the hiring of overseas employees or contractors who will hire overseas employees. Lets bring those jobs back to America now!

  • do these executives give up on the excuses and just admit they are doing RTO just so they can have an affair with the interns?

  • If a worker is to be remote, then it isn't geographically bound. Going abroad makes sense. If the skills are roughly equivalent, hire for value proposition. On the other hand, they're willing to chip in to relocate workers who wish to remain. Presumably those who do opt to return to work and are already in the correct region will not have their circumstance changed.

    I'm not defending any policy, just noting that it's pretty coherent.

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