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IBM was tired of numerous home offices and gave managers an ultimatum

IBM was tired of numerous home offices and gave managers an ultimatum

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In a recent internal memo, International Business Machines Corp. (IBM) instructed its managers in the United States to do so They must work from an office or client office at least three days a week.

IBM's position is clear: Managers who currently work remotely should relocate closer to an IBM facility, which is typically defined as a 50-mile radius.

The exception is if they cannot do so due to health conditions or military service. If they do not meet these conditions by the beginning of August, it will result in dismissal from the company, the company director said.

An IBM spokesperson emphasized that the company is committed to supporting workplaces that provide flexibility while encouraging personal collaboration. Such interactions are believed to increase productivity, innovation and quality of customer service.

IBM CEO Arvind Krishna has consistently championed the benefits of face-to-face work. In an interview with Bloomberg in May 2023, Krishna suggested this Employees who work off-site may face fewer opportunities for promotion. This belief is in line with previous internal communications from November, according to which employees of infrastructure companies should report to their offices three times a week.

Due to the consolidation of activities, IBM has closed many of its offices since the beginning of the pandemic. These closures are part of IBM's strategy to increase margins by reducing real estate, CFO James Cavanaugh confirmed during the earnings call.

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At IBM, the return to the office is reflecting well Broader trends in various industriesWhere companies are amid the economic downturn and the possibility of job cuts They are tightening the remote work policy. In particular, technology giants such as Amazon.com and AT&T have also ordered some remote workers closer to corporate offices.

Despite stricter regulations, office occupancy in 2023 remains relatively unchanged from pre-pandemic levels — about 50% in major business districts — and even lower in tech hubs like the San Francisco Bay Area, according to data from Kastle Systems.

Cover image source: Shutterstock

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