IBM Issues a Three-Day In-Office Ultimatum to Remote Managers: Move Near the Office or Leave

By Moon Harper

Jan 30, 2024 11:34 PM EST

The tech giant, IBM, requires its U.S. managers to work from an office or client site for at least three days a week and plans to use badge-in data to track individual presence, per an internal memo dated January 16.

According to a person familiar with the new requirement, employees must live within 50 miles of an IBM office or client site and finalize relocation plans by August. As per the memo, those unable to meet this requirement or secure a remote position must separate from IBM.

IBM's Commitment to Work Flexibility with In-Person Interactions

An IBM spokesperson verified the memo's information to Bloomberg, emphasizing the company's commitment to creating a work environment that combines flexibility with in-person interactions.

"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," the spokesperson told Bloomberg.

Last May, while IBM CEO Arvind Krishna assured workers they wouldn't be compelled to return to the office, he also cautioned that not doing so could negatively impact long-term careers, making it more challenging to secure promotions. In September, IBM tightened remote work rules for regular employees, emphasizing the need to be more committed to the office to preserve flexible hybrid work. Although this applied specifically to those within 50 miles of an IBM office, the memo mentioned that other workers were only "exempt at this time," suggesting potential future changes.

Managers Being Summoned Back to the Office

As companies navigate beyond the extensive work-from-home experiment due to COVID-19, IBM has recently extended its return-to-office requirement to managers.

As per a memo from Senior VP John Granger on January 16, remote managers will need to come back to the office at least three days a week starting in August, regardless of their current work location status. Managers enjoying remote work privileges since 2020 will now need to relocate closer to office or client locations, typically within an 80-kilometer radius from a hub, as per an insider familiar with the company.

Although employees with medical issues or on military service are exempt from the policy, the company will assess the attendance of remaining managers using badge-in data. According to the memo, if affected staff members can secure a remote position and do not comply, they must "separate from IBM."

Similar Ultimatum of "Relocate or Quit" from Other Companies

IBM's recent memo follows a trend where various companies, including AT&T, Grindr, and Amazon, have recently issued similar ultimatums, requiring their employees to either relocate or resign in 2023,

Like IBM, AT&T's directive primarily targeted managers. However, despite having only nine open office locations in the U.S., 9,000 employees had to decide between relocating or seeking employment elsewhere. Many workers felt cornered, with one AT&T manager describing it as a layoff masked as a return-to-office policy, a sentiment employment experts also agreed.

RTO Mandates as Layoff Strategies

Dr. Gleb Tsipursky, CEO of hybrid work consultancy Disaster Avoidance Experts, suggests that many companies are employing return-to-office (RTO) mandates as a layoff strategy. According to Tsipursky, this can be observed in cases where companies implement layoffs before or after introducing an RTO mandate, which some companies are transparently using to avoid providing paid severance packages.

Despite projecting positive revenue for 2024, IBM recently revealed plans to cut a percentage of positions in the "low single digits" this year. This aligns with Tsipursky's theory that IBM might be attempting to encourage staff to relocate voluntarily. Regardless of IBM's intent, one thing is clear: compelling employees to move during a cost-of-living crisis or risk losing their jobs is likely to have negative consequences in the long term.