International Business Machines Corp. (IBM) issued a companywide ultimatum to managers who are still working remotely: relocate to an office or leave the company. All US managers must report to an office or client location at least three days a week, “regardless of current work location status,” according to a message acquired by Bloomberg on Jan. 16. Badge-in data would be used to “assess individual presence” and shared with managers and human resources, Senior Vice President John Granger stated in the email.
Some IBM teams have previously implemented office attendance requirements
Those working remotely, other than employees with exceptions such as medical issues or military service, who don’t live close enough to commute to a facility must relocate near an IBM office by the start of August, according to the memo. That generally means within 50 miles (80 kilometres), according to a person familiar with the rule who asked not to be identified as speaking about corporate policy. Managers who don’t agree to relocate and are unable to secure a role that’s approved to be remote must “separate from IBM,” Granger wrote.
“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,” a company spokesperson said. “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.” Chief Executive Officer Arvind Krishna has long emphasized the value of in-person work. Krishna told Bloomberg in May 2023 that promotions will be less common for individuals who are not on-site. Some IBM teams have previously implemented office attendance requirements. A November memo instructed staff in the infrastructure business unit to visit corporate locations at least three days per week, with “managers and executives expected to be in more.”
In recent years, the company has streamlined its operations to focus on software and services
In recent years, IBM has streamlined its operations to focus on software and services, launched new products to capitalize on interest in artificial intelligence, and divested its managed infrastructure, weather, and health businesses. Executives provided a strong prognosis for 2024 in fourth-quarter earnings last week, bringing shares to their highest level in nearly four years. Big Blue expects to slash employment this year, spending the same amount on restructuring as it did last year when it expected to lay off 3,900 people, Chief Financial Officer James Kavanaugh said last week. Return-to-work mandates are frequently viewed as fueling attrition. IBM had around 288,000 employees worldwide at the end of 2022.
Since the start of the epidemic, the corporation has closed several offices, including those in Philadelphia, central New York State, Southbury, Connecticut, and Iowa, which may complicate workers’ return to work preparations. IBM’s continued margin-expansion efforts include reducing its real estate footprint, according to Kavanaugh, who spoke on an earnings call last week. It was unclear how many supervisors would be needed to move under the new standards.
Many businesses have tightened return-to-work requirements in the last year, replacing employee-friendly incentives like happy hours and commuter subsidies with more punitive measures such as disciplinary action or limited career progression if attendance objectives are not met. The tech industry, in particular, has seen tighter regulations as the market has deteriorated and the risk of job cutbacks has skewed the scales in favour of businesses. Amazon.com Inc. and AT&T Inc. have both ordered some remote employees to relocate near their offices. Despite new constraints, office attendance remained relatively stable in 2023, according to Kastle Systems data. Across the ten largest business districts in the United States, the number of workers at the office was roughly half of what it was before the epidemic, with tech-heavy places like the San Francisco Bay Area reporting even lower percentages.