IBM accused of trying to look as cool as Amazon and Google by firing older employees

midian182

Posts: 5,876   +48
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The tech giant is facing a number of lawsuits accusing it of age discrimination. Bloomberg writes that in one of these civil cases, a former vice president of human resources, Alan Wild, said in a deposition that IBM had “laid off 50,000 to 100,000 employees in just the last several years.”

Wild added that IBM had recruitment problems and determined that one way to show millennials it wasn’t an “old fuddy duddy organization” was to come across “as [a] cool, trendy organization” like Amazon and Google. The solution, according to court documents, was to lay off large portions of its older employees over several years.

The suit claims IBM started firing older workers in 2014, replacing them with millennials who its consulting department believes “are generally much more innovative and receptive to technology than baby boomers.”

While it’s still considered an industry leader, IBM has struggled to compete against newer companies such as Google and Amazon in recent times, and has seen its revenues slowly decline over the last seven years. According to the Wall Streeet Journal, it laid off another 2,000 employees last month.

In an email, IBM said it "hires 50,000 employees each year, and spends nearly a half-billion dollars on training our team."

"We also receive more than 8,000 job applications every day, the highest rate that we've ever experienced, so there's clear excitement about IBM's strategy and direction for the future."

Bloomberg writes that at the end of 2018, IBM’s global workforce stood at 350,600, marking a 19 percent reduction since 2013.

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mbrowne5061

Posts: 1,527   +846
These lawsuits are going to have a tough time, since the older employees both make more money (making them prime targets for cost-cutting) and IBM can show a overall decrease in headcount and revenue over the years. Just because someone older was laid off doesn't mean a company isn't allowed to hire someone younger in the same dept. ever again.
 

Deevo324

Posts: 27   +16
Want to know why CSC, previously the second largest IT services provider in the world, crashed and burned? For exactly the same reason. Oddly enough, senior management at their clients were not at all happy dealing with young people they perceived as naive and inexperienced where previously they were dealing with mature and very experienced experts.
 
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dogofwars

Posts: 209   +80
These lawsuits are going to have a tough time, since the older employees both make more money (making them prime targets for cost-cutting) and IBM can show a overall decrease in headcount and revenue over the years. Just because someone older was laid off doesn't mean a company isn't allowed to hire someone younger in the same dept. ever again.
Well it depend of the country. In Canada you can't do that regardless of the reason. You don't fire a guy because he is older and cost you more and hire a new guy that is younger especially at that rate. In the US it could be another story by again IBM have employee all over the world so.