IBM’s Project Chrome, the largest mass layoff at a U.S. corporation in at least 20 years, is underway according to a report by Robert X. Cringely in Forbes. The company has denied the report, claiming that a planned $600 million “workforce rebalancing” will result in layoffs of only thousands of people. However, Cringely has responded that multiple tactics are being used to reduce the workforce, including pushing employees out through low ratings. Managers have been admitting to employees that their job has been eliminated as part of Project Chrome, leading to the phrase “Getting Chromed” being coined. Notices have started going out and the majority of the more than 100,000 affected people are expected to be gone by the end of February.
Reports of job losses are coming in from around the world, with IBM employees in sales, support and engineering roles feeling the brunt of the cuts. The only IBMers spared are those working in semiconductor manufacturing, which is in the process of being acquired by Global Foundries.
Alliance@IBM, the IBM employees’ union, has reported that 5000 jobs have been eliminated so far, including 250 in Boulder, Colo., 150 in Columbia, Missouri, and 202 in Dubuque, Iowa. Layoffs in Littleton, Mass., have been described as “massive”, though no specific numbers have been released. Meanwhile, rumors suggest 400 workers have been cut at IBM Australia, and the Economic Times in India reported last week that employees of IBM’s offices in Bengaluru were looking for new jobs in anticipation of further job losses.
The latest figures released by IBM reveal that the company has laid off thousands of employees. However, some of the dismissals have been conducted under the guise of a performance rating ploy. This involves giving a previously highly rated employee a score of 3, the lowest rating, and then showing them the door. For older employees enrolled in the Bridge to Retirement program, this can result in immediate dismissal, as they have agreed to reduced hours and pay in return for protection from termination unless they receive a poor performance rating. For younger employees, a rating of 3 can put them on a Performance Improvement Plan, and if their performance does not improve in the allotted time, they can be fired for cause. IBM also stands to benefit from this practice, as it can lead to reduced severance benefits for those who are officially laid off.
IBM employees have been raising concerns over unexpected poor performance reviews prior to layoffs. A former employee who experienced a Resource Action in 2010 has confirmed that this is a standard operating procedure, claiming to have had their best year ever before receiving a 3 rating.
The Alliance@IBM website has been collecting comments from employees indicating that a sudden influx of bad reviews began last week. Examples include employees who had worked for over a year and 8 months receiving a 3 rating, an employee with 13 and a half years of experience given a 3 rating, and employees in Research Triangle Park being told they have 30 days to improve their performance or face consequences. This has raised questions over the fairness of the process and the accuracy of the reviews.
Reports are emerging that older employees and women are disproportionately affected by recent resource actions. These allegations have yet to be proven in court, but several examples have been shared. For example, one 54-year-old employee with 22 years of experience was reportedly given a rating of three without any explanation from their manager. Another employee, 56 years old, was given a consistent two rating as an information developer. A 61-year-old chief engineer was also reportedly given a two rating before being resource actioned. One woman shared her experience of being resource actioned despite her consistently high performance numbers, noting that the male partners who were retained had strong relationships with their customers.
On Friday, IBM’s board announced a substantial pay raise for CEO Ginni Rometty, a move that has been met with criticism from employees and members of the public. One current employee commented, “Just call her Machete Rometty” in response to the news. A selection of the comments can be found online.
