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.

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The Register: Following our report last week on IBM's ongoing layoffs, current and former employees got in touch to confirm what many suspected: The US cuts run deeper than reported, and the jobs are heading to India. IBM's own careers site numbers back that up. On January 7, 2024, Big Blue listed just 173 open positions in India. On November 23, 2024, there were 2,946 jobs available in the nation. At the time of writing, the IT titan listed 3,866 roles in India. American jobs listed for these three periods are 192, 376, and 333, respectively, though at least among those being laid off, there's doubt those roles will be filled with job seekers in the States. A current IBMer who won't be there much longer said that after being told to teach recently hired workers in India "everything I know," the reward was a resource action, or RA -- Big Blue's euphemism for a layoff. After receiving an RA notification, employees typically have a set period of time to apply for open roles elsewhere in the mega-corporation. But just because there are open positions listed in the US doesn't mean IBM is making much of an effort to fill them, we are told.

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IBM is laying off thousands of employees across the United States, with approximately 25% of staff at its Cloud Classic operation affected, The Register reports, citing a source. "Concrete numbers are being kept private," a source told the publication. "It is in the thousands." Staff reductions have occurred in Raleigh, North Carolina; New York; Dallas, Texas; and California, the report said. Affected departments include consulting, corporate social responsibility, cloud infrastructure, sales, and internal systems teams. The report adds: With regard to IBM Cloud Classic -- the infrastructure-as-a-service (IaaS) outfit offering built on IBM's 2013 acquisition of SoftLayer -- another source told us: "It's a resource action. I don't know how many people are in IaaS classic. They don't typically make that information easy to find. What I can say is that they have been making a lot of changes to shift employment to India as much as possible." A third source, newly let go by Big Blue, said it was fair to characterize this a layoff. "Everyone I know that was affected, myself included, was simply offered a separation agreement," this individual said, estimating that 10 percent of the Cloud group (which is not the same as Cloud Classic) has been let go.

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