Why is IBM laying off old employees

Ver.di: IBM dismisses almost 1000 employees in Germany (update)

Hans-Christian Dirscherl

IBM wants to lay off almost 1,000 people in Germany. This is what Ver.di reports. The reason is a restructuring. Update: evasive statement from IBM.

EnlargeVer.di: IBM is laying off almost 1000 employees in Germany
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IBM is planning almost 1,000 layoffs in Germany. This is announced by the Ver.di union. Accordingly, on the evening of January 18, IBM informed the supervisory board bodies and, during January 19, the relevant works council committees, of plans to terminate almost 1000 IBM employees. IBM justifies the planned layoffs with "maintaining competitiveness and realigning the organization and skills". IBM now wants to start negotiations on social plans.

Update: evasive statement from IBM

When asked, IBM told us: "Our personnel decisions are made to best support our customers on their way to the introduction of an open hybrid cloud platform and AI capability. We are also investing new in our business. We will continue to make significant investments in Carry out education and training of the knowledge of IBMers in order to better meet the requirements of our customers. "

When we asked whether the number of 1,000 layoffs was correct, by when the downsizing should be carried out and which IBM companies and locations were affected, IBM did not answer us. Update end

The boards of directors of the Ver.di operating groups and the members of the Ver.di tariff commission in the IBM group are calling on IBM to withdraw the termination plans. Ver.di is of the opinion that the restructuring of the group “could also succeed with qualified IBMers who have shown their commitment to the company, especially in times of the pandemic”. According to Ver.di there are alternatives to downsizing. Impending layoffs would create a climate of uncertainty and fear. Ver.di fears "that collective agreements and legal regulations will be ignored and that members of works council committees and representatives of the severely disabled should also be given notice".

In this context, Ver.di lists various waves of layoffs at various IBM companies in the past: "In 2005 it hit IBM D BS GmbH, in 2015 it was the turn of IBM D EAS GmbH, in 2016 IBM D B&TS GmbH, the IBM D GBS GmbH and IBM D MBS GmbH terminated and in 2020 IBM D AIS GmbH and IBM D AIWS GmbH were affected ". According to Ver.di, there would be layoffs at all IBM companies in 2021 if IBM implemented its plans.

There were already indications of an upcoming job cuts at IBM in 2020. In October 2020, the Handelsblatt reported on 2300 jobs that are to be cut in Germany. In November 2020, there was talk of around 8,000 to 10,000 layoffs in Europe. The downsizing is said to be linked to restructuring. For example, IBM wants to outsource its infrastructure services business to a separate company, as the CIO reports, and will concentrate more on cloud services in the future. The well-known Linux company Red Hat, which IBM has taken over, also belongs to the cloud segment.

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