The COVID crisis is hitting almost every market sector hard, and now the dominos are starting to fall. As other small, medium, and large businesses pare back operations or shutter for good, the tech firms that rely on enterprise clients are themselves taking heavy losses and laying off personnel. Both Hewlett-Packard Enterprise and IBM this week announced significant cost-cutting measures, including pay cuts and significant job losses. IBM announced its layoffs late Thursday.
IBM Is Using An Unusual New Tactic To Retrain Its Employees Instead Of Laying Them Off
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A copy of the Sept. The memo sent to affected employees begins by telling the worker that an assessment has revealed "that some managers and employees have not kept pace with acquiring the skills and expertise needed to address changing client needs, technology and market requirements. It then tells the recipient that "you have been identified as one of these employees," and says that from mid-October through the end of March, "you will dedicate up to one day per week," or up to 23 working days total, "to focus on learning and development. But IBM is coupling this training with a six month salary reduction. Asked about program, IBM spokeswoman Trink Guarino said the firm "is implementing a skills development program for a small number of U.
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Conrad also noted that IBM's action seemed timed to ensure that the company would not have to pay annual variable pay to workers let go before July 1. The variable pay program is an incentive program that awards up to 10 percent of an employee's salary, based on individual review, performance of the employee's division and overall company performance, he said. Workers on the payroll as of June 30 will receive this pay for next year, but those who are terminated will not, he said. Linda Guyer, president of Communications Workers of America Local , Alliance IBM said the planned layoffs, "or work force re-balancing, as a company spokesperson called it, are eliminating the jobs of experienced and trained employees while retaining recent college hires and hiring temporary workers as replacements.
IBM's lobby features artwork with images associated with numerous IBM inventions created in the company's years. IBM occupies four floors in a brand new building built in downtown Baton Rouge. A group of former employees has filed a lawsuit against IBM that accuses the tech giant of failing to comply with a federal law that requires companies to disclose the ages of people they lay off who are 40 or older. The suit, filed in federal district court in New York City, also alleges that the company has improperly prevented workers from combining to challenge their ousters. It is the second broad legal action against IBM since a ProPublica story that documented widespread age discrimination by the company in its global restructuring.