$IBM has ordered US managers back to office three days a week. Managers who decline to relocate will leave company

$IBM has ordered US managers back to office three days a week. Managers who decline to relocate will leave company.


Employees working remotely, excluding those with exceptions like medical issues or military service, will need to relocate near an IBM office by the beginning of August, according to the memo. Typically, this means within 50 miles (80 kilometers), as per an insider familiar with the policy.

Managers who decline to relocate and can't secure a remote-approved role must "separate from IBM," stated Granger.

IBM spokesperson mentioned, "IBM is focused on providing a work environment that balances flexibility with the face-to-face interactions that make us more productive, innovative and better able to serve our clients. Consistent with that approach, we’re requiring executives and people managers in the United States to be in the office at least three days per week."

CEO Arvind Krishna has consistently emphasized the importance of in-person work. In a May 2023 interview, Krishna indicated that promotions will be less frequent for those not on-site. Some IBM teams had previously instituted office attendance requirements. A November memo directed infrastructure business unit employees to attend company locations at least three days a week, with "managers and executives expected to be in more."

In recent years, IBM has streamlined its operations to focus on software and services, introduced new products in artificial intelligence, and divested from managed infrastructure, weather, and health businesses. Executives presented a positive outlook for 2024 in last week's fourth-quarter earnings report.

IBM anticipates job cuts this year, similar to last year's plan to cut 3,900 workers, according to CFO James Kavanaugh. Return-to-office mandates are often linked to attrition. As of the end of 2022, IBM had approximately 288,000 workers globally.

Several offices have been closed by the company since the pandemic's onset, potentially complicating return-to-office plans for employees. The exact number of managers required to relocate under the new rules is unknown.

Many companies have increased return-to-office requirements, replacing employee-friendly incentives with more stringent measures such as disciplinary action or limited career advancement if attendance targets aren’t met. The tech industry, in particular, has seen tightened rules amid market challenges, with companies like Amazon.com Inc. and AT&T Inc. ordering some remote workers to relocate near offices.