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IBM faces criticism over its return-to-office order amid suspicions of replacing human employees with artificial intelligence.
IBM plans to replace employees with artificial intelligence.
IBM has implemented a new return-to-office policy that has raised concerns among its employees in the Finance and Operations department. Workers have been given an ultimatum: they must relocate closer to the company offices in North Carolina or New York, or else accept a severance package.
Employees have been informed that to comply with this new in-office work policy, they must live within 50 miles of the mentioned locations. Those who prefer not to move will face the option of exiting the company with severance pay of up to six months, depending on their length of service at IBM. The company aims to cut costs in its Finance and Operations division, considered one of the most expensive, by using artificial intelligence, hiring recent graduates, and turning to outsourcing.
According to reports, IBM has been conducting "soft" layoffs, as the voluntary resignation of employees has allowed them to avoid formal layoffs. Previously, the company faced accusations of discrimination when implementing layoffs.
In its most recent earnings report, IBM's CEO, Arvind Krishna, highlighted that the company had managed to fulfill its commitments, although quarterly and annual revenues only increased by 1% year-on-year. By 2025, IBM expects to achieve 5% revenue growth. However, it has been stated that "thousands will be replaced by artificial intelligence," and the company's management is intensely focused on cuts and a slowdown in hiring.
IBM has been contacted to confirm its new policy and the impact of artificial intelligence on its workforce, but they have not yet provided an immediate response.