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Stealth Layoffs Continue at IBM

Read employee stories here

Feb. 6, 2002

  • 200 workers cut in Portland OR - former Sequent Systems
  • Resource action announced yesterday in CSO locations: Atlanta MA & OE, Dallas SW & HW, and A/R locations across U.S.
  • Unknown number let go in San Jose, Boulder, Southbury CT, and other sites
  • If you have just been given notice, please e-mail us the package you received from IBM management. This will help determine if age or other discrimination has taken place.

Layoff Strategies at other companies:*


Voluntary sabbatical program known as "Flexleave." Offered to about 1,400 consultants mostly in the United States, the program gives them 20 percent of their salaries and continues benefits over a six- to 12-month period. Stock options remain in place for those who took the offer

Cisco Employees can receive a third of their salaries, all benefits, and stock-option awards while working for one year at a not-for-profit group already associated with the company
Charles Schwab Corp. The company guaranteed a $7,500 bonus for any affected employee who gets rehired within 18 months. In addition, company founder Charles Schwab and his wife have created a $10 million educational fund for these workers. The fund will cover as much as $20,000 worth of tuition over two years at accredited academic institutions.
Texas Instruments The chip maker began "lending" several human-resources staffers to vendors for as many as eight months, with the intention of bringing them back to their original jobs at the end of that period. The supplier reimburses Texas Instruments for the staffers' salaries during the loan period and agrees not to offer them a permanent job.

* from Creative Layoff Strategies

“I haven’t failed at many things in my life,” John Chambers, Cisco CEO, said in an interview with The Washington Post last month. “But I failed at preventing layoffs. It will be a scar on my history.”

"Skills no longer needed are going to be replaced by people with skills we do need," IBM spokesman John Lucy

"IBM is working very hard to maintain that things are just roses, roses ...What they're doing is these stealth cutbacks." Will Zachmann, META Group analyst