IBM targets senior programmers, sales in latest ‘workforce rebalancing’ shake-up

What’s happening at IBM?

IBM has initiated another round of layoffs as part of its ongoing “workforce rebalancing” effort, with a focus on senior-level programmers, sales, and support personnel. This follows the company’s earlier announcement of a global workforce reduction of 1% to 1.5%.

Details of the layoffs

• The latest cuts have been reported in places like California and Washington.
• Impacted roles include a mix of sales, technical positions, software roles, and specialized jobs like AI engineers and data scientists.

Official statements and context

IBM first announced its rebalancing strategy in early 2024, revealing plans to take a $400 million charge in the first quarter, compared to $300 million in severance charges from Q1 2023. Despite the ongoing layoffs, the company expects its overall employment level to remain stable by the end of 2024.

The company has also acknowledged a longer-term trend of replacing non-customer-facing roles with AI and automation. IBM CEO Arvind Krishna previously indicated that 30% of these positions—around 8,000 jobs—could be automated within five years.

Layoffs in Canada

It remains unclear exactly how many IBM employees in Canada will lose their job as a result of this layoff.

Your rights

In Canada, non-unionized employees at IBM are owed full severance pay when they lose their jobs due to downsizing, corporate restructuring, or the closure of the business.

This applies to individuals working in any capacity — full-time, part-time, hourly, or potentially even independent contractors — in Ontario, Alberta, and British Columbia.

Severance is the compensation provided to non-unionized workers in Canada by their employer when they are terminated without cause, and can be as much as 24 months’ pay, depending on a number of factors.

WATCH: Employment lawyer Lior Samfiru explains why you are still owed severance if you have been downsized on an episode of the Employment Law Show.

Severance offers and deadlines

Before accepting a severance offer, double-check the amount using our firm’s free Severance Pay Calculator. It has helped millions of Canadians determine their entitlements.

In addition to your salary, make sure to factor in any other elements of your compensation (i.e. bonuses, commission, etc.).

If your employer’s offer falls short of what our Severance Pay Calculator says you are owed, it’s very likely that you have been wrongfully dismissed and should contact an experienced employment lawyer at Samfiru Tumarkin LLP.

Non-unionized employees in Canada have up to two years from the date of their dismissal to pursue proper severance pay. An employer’s deadline to sign back a severance offer is not legally enforceable or binding.

LEARN MORE
• Severance pay for provincially regulated employees
• Rights to severance during mass layoffs
• Severance entitlements in a recession

Major layoffs continue

The job cuts come amid a flurry of layoffs in 2024.

Big names, including Intuit, UiPath, Dyson, Vancity, Stifel, SAP Canada, Netflix, AmDocs, EXL Service, Best Buy, Relic Entertainment, Ubisoft, Intel, Amazon, and Telus, have pulled out the axe as they continue to navigate challenging economic conditions.

SEE ALSO
• Shell to lay off 20% of deals division, part of restructuring
• Walmart Canada cuts jobs amid restructuring, shift to Spark: Reports
• Where are layoffs happening in Canada?

Lost your job? Talk to an employment lawyer

If you have been fired or let go for any reason, contact the experienced employment law team at Samfiru Tumarkin LLP.

Our lawyers in Ontario, Alberta, and B.C. have successfully represented tens of thousands of non-unionized individuals.

In addition to severance package negotiations, we can assist you on a broad range of employment matters, including:

If you are a non-unionized employee who needs help with a workplace issue, contact us or call 1-855-821-5900 to get the advice you need and the compensation you deserve.

Disclaimer: The materials above are provided as general information about the rights of non-unionized employees in Canada. It is not specific to any one company and should not be read as suggesting any improper conduct on the part of any specific employer, or a relationship between Samfiru Tumarkin LLP and a specific employer.