IBM to managers: move near an office or leave company

“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 long touted the importance of in-person work. Last May, he said promotions would be rarer for those who weren’t in the office.

Some teams within IBM had already instituted office attendance requirements. A November memo told employees in the infrastructure business unit to show up at company locations at least three days a week, with “managers and executives expected to be in more”.

IBM has slimmed its operations to focus on software and services in recent years, introduced new products to capitalise on interest in artificial intelligence, and divested its managed infrastructure, weather and health businesses.

Executives gave a positive outlook for 2024 with fourth-quarter earnings last week, sending shares to their best day in almost four years.

Big Blue expects to reduce jobs this year, spending a similar amount on restructuring as it did last year when it planned to cut 3900 workers, chief financial officer James Kavanaugh said last week.

Return-to-office mandates are often seen as fuelling attrition. IBM had about 288,000 workers globally at the end of 2022.

The company has closed a number of offices since the onset of the pandemic, potentially complicating return-to-office plans for workers, including facilities in Philadelphia, central New York State, Southbury, Connecticut, and Iowa.

Reducing its real estate footprint is part of IBM’s ongoing margin-expansion efforts, Mr Kavanaugh said.

Many companies have increased return-to-office requirements over the past year, replacing employee-friendly incentives such as happy hours and commuter subsidies with more punitive measures, including disciplinary action or limited career advancement if attendance targets aren’t met.

The tech industry in particular has seen tightening rules as the market soured and the risk of job cuts tipped the scale in favour of employers. Amazon and AT&T have each ordered some remote workers to relocate near offices.

Despite new rules, office attendance remained fairly stagnant throughout 2023, data from Kastle Systems found. Across the 10 largest business districts in the US, the number of workers in the office hovered around 50 per cent of what it was before the pandemic, with tech-heavy regions such as the San Francisco Bay Area reporting even lower percentages.

Bloomberg

Bloomberg