IBM Layoffs in Canada: Employee Rights, Severance Pay, and What You Need to Know

IBM has undergone significant restructuring tied to artificial intelligence (AI) and hybrid-cloud expansion, resulting in repeated job cuts over the past several years.

On November 4, 2025, IBM confirmed a new round of global layoffs impacting a “low single-digit percentage” of its 270,000-person workforce — meaning thousands of job losses worldwide, according to Reuters and Bloomberg.

• Hundreds of Canadian employees across offices in Markham, Ottawa, Montreal, Calgary, and Vancouver have been affected.
• IBM employees in Ottawa’s Cognos team were among those hit (Reddit).

These reductions follow earlier layoffs in 2024 and 2023, with many tied to IBM’s transition toward AI, automation, and higher-margin technical work.

Regardless of the timing of IBM’s restructuring, the rights of non-unionized Canadian employees remain the same under Canadian employment law.

Who IBM May Lay Off in Canada

IBM has not released Canada-specific numbers, but recent cuts have impacted roles in:

• Human resources and administrative departments
• Marketing and communications teams
• Cloud and infrastructure support
• Legacy software, systems, and redundant technical units
• Regional office staff tied to global delivery hubs
• Contract or project-based workers (many of whom may legally qualify as “employees”)

IBM’s 2025 “workforce rebalancing” represents its largest AI-related job reduction to date.

Know Your Rights When IBM Lays You Off

If you are a non-unionized employee in Canada, an IBM layoff — regardless of whether it’s labeled restructuring, automation, or workforce rebalancing — is legally treated as a termination without cause.

That means IBM owes you:

• Full severance pay
• Notice or pay in lieu of notice
• All compensation owed under Canadian common law, not just minimum ESA standards

Your severance must reflect:

• Salary
• Benefits
• Bonus or commissions
• RSUs, stock options, or incentives
• Pension contributions
• Vacation pay and allowances

Most IBM employees are owed much more than the initial offer IBM provides.

Severance Packages for IBM Employees

Under common law, non-unionized IBM employees may be entitled to up to 24 months of severance pay in Canada.

Your severance entitlement is based on:

• Age
• Length of service
• Position and level of responsibility
• Availability of similar jobs in the market

IBM’s first package may:

• Provide only ESA minimums
• Exclude RSUs or bonus pay
• Set a short signing deadline
• Provide a lump-sum figure without explanation
• Understate the true value of your compensation

This is why you should always have your package reviewed before signing.

Potential Issues With IBM Layoff Notices

Common problems seen in IBM terminations include:

• Incorrect or incomplete severance calculations
• Insufficient notice periods
• “Temporary layoff” language where no recall will occur
• Missing details about RSUs, stock options, or bonuses
• Short signing deadlines designed to pressure acceptance
• Lack of clarity on benefits continuation

Common Red Flags in IBM Severance Offers

Be cautious if IBM’s severance package:

• Offers only a few weeks or months of pay
• Excludes or shortens benefits continuation
• Leaves out RSUs, stock options, or equity
• Fails to explain bonus treatment
• Labels a permanent termination as “restructuring”
• Gives you 24–48 hours to sign
• Doesn’t show how severance was calculated

These are signs you should speak with an employment lawyer in Canada.

Wrongful Dismissal and IBM Layoffs

A wrongful dismissal occurs when IBM fails to provide the full severance owed under Canadian law.

You may have a claim if:

• Your severance is below your actual entitlement
• Your termination clause is unenforceable
• You faced pressure to accept quickly
• You were laid off during maternity, parental, disability, or medical leave
• You were told the layoff was “temporary” with no real recall plan
• Your RSUs, bonuses, or benefits were excluded

Even large global restructuring initiatives can involve wrongful dismissal issues.

What to Do After IBM Lays You Off

1. Don’t sign anything until a lawyer reviews it
2. Gather documents (contracts, RSU plans, bonus plans, offer letters)
3. Use the Severance Pay Calculator for a quick estimate
4. Document your job duties and responsibilities
5. Speak to an employment lawyer as soon as possible

Employees have up to two years to pursue a claim, but signing a package waives your rights.

Frequently Asked Questions About IBM Layoffs

How many IBM employees have been laid off in Canada?

IBM has not released official numbers, but hundreds are estimated to be affected across multiple cities in 2025.

Does IBM have to include RSUs or stock options in severance?

Often yes — equity is a major part of compensation and is frequently negotiated.

Can IBM replace my job with AI without paying severance?

No. Eliminating your position due to AI does not remove IBM’s obligation to provide severance.

Can IBM lay me off while I’m on maternity or disability leave?

Generally no. This may violate employment standards or human rights laws.

Do IBM contractors get severance?

Sometimes. Many contractors are actually misclassified employees and are entitled to severance.

How Samfiru Tumarkin LLP Can Help With IBM Layoffs

If IBM has laid you off — or you feel at risk following recent restructuring — speak with an employment lawyer before signing anything.

Samfiru Tumarkin LLP has represented more than 50,000 Canadian employees, including clients from IBM, Microsoft, Shopify, Amazon, and other leading tech companies. We have earned more than 3,000 five-star reviews across Canada.