IBM is quietly axing jobs, source says
IBM’s latest round of layoffs, reportedly concentrated among U.S. employees in their 50s with long tenure and higher pay bands, is prompting scrutiny over age discrimination, severance NDAs, and the ethics of “resource actions.” Commenters argue over whether targeting expensive senior staff is simple cost-cutting or de facto ageism, especially as work is offshored or rehired into cheaper, younger roles. Many tie the cuts to a decades-long pattern of financial engineering, offshoring, and stock buybacks at IBM, contrasting the company’s solid share performance and AI marketing with what they see as long-term erosion of talent and capability.
Severance NDAs and Legal/Practical Issues
- Many assume NDAs are tied to receiving severance; “cash for silence.”
- Some advise refusing NDAs/arbitration unless the package is substantial, to preserve legal options.
- Questions about enforceability: depends on contract and jurisdiction; fear of deep-pocketed legal action deters people even if clauses might be weak.
- Several point to US labor law/NLRB guidance that overbroad severance NDAs restricting concerted activity are likely illegal.
- Others note NDAs are easy to bypass via anonymous leaks and mainly make IBM look worse.
Frequency and Targeting of Layoffs
- Commenters say IBM does layoffs regularly, almost as a routine cost-control tool.
- Reported pattern: many affected are in their 50s with 20+ years at the company, often at higher pay bands.
- Some insist this is primarily cost-cutting, not intentional ageism; others argue repeated concentration on older, long-tenured employees plus rehiring younger workers at similar pay is age discrimination in practice.
- Debate over whether “firing the most expensive people” is materially different from age-based firing when age and cost are tightly correlated.
Skills, Pay Bands, and “Topped Out” Employees
- One view: those laid off at top of a band have capped-out growth and are overpaid relative to contribution; they’re natural targets.
- Others counter that productivity and institutional knowledge can remain high even if promotion prospects are low.
- Advice offered: better to change employers than request a voluntary pay cut to reduce layoff risk.
Offshoring, AI, and Workload
- IBM is said to be cutting in the US while hiring in India; critics call this quality-eroding and “traitorous,” suggesting unionization and boycotts.
- Some layoffs blamed rhetorically on AI/automation, but insiders say work is often simply redistributed to remaining staff or cheaper regions.
- Opinions split on AI: some see net job creation long term; others focus on its use as a pretext for cost-driven cuts.
IBM’s Strategy, Performance, and Culture
- Thread portrays IBM as a long-term “declining giant” relative to peers, kept afloat by financial engineering, share buybacks, and repeated restructuring.
- Executive compensation growth and missed internal goals are cited as misaligned incentives.
- Experiences with offshoring failures, toxic services branding, and poor cloud offerings reinforce a view that IBM prioritizes short-term financials over product quality and employee stability.