- IBM (NYSE:IBM) cut around 20K American employees over the age of 40 in the last few years, according to a new investigation from Pro Publica and Mother Jones.
- The figure represented about 60% of IBM’s total U.S. job cuts in that period.
- IBM got around publicly disclosing the mass layoffs by converting the cuts into voluntary retirements or resignations.
- Some employees were fired for supposed “performance issues” but then rehired as a cheaper contract employee. Others were encouraged to apply for other roles in the company, but IBM advised hiring managers not to hire that person.
- Employees were also pressured to sign agreements that they wouldn’t go to court against IBM or discuss their experience.
- IBM’s response: “We are proud of our company and our employees’ ability to reinvent themselves era after era, while always complying with the law. Our ability to do this is why we are the only tech company that has not only survived but thrived for more than 100 years.”
- Read the full report here.
- IBM shares are down 2.1% to $153.37.
- Now read: Is IBM Back In The Game?
Original article