Reply to post: Transformation away from careers

IBM UK: Oh, remote workers. We want to be colocated with you again

Shannon Jacobs

Transformation away from careers

Interesting analysis, but a bit too hyperbolic. In particular, I think that it discounts "respect for the individual", which actually had a relevance era at IBM that lasted much longer than the google's "don't be evil" motto. I don't think IBM ever wanted to kill employees (and doesn't want it now because of the paperwork), but the old IBM did want full-career lifetime commitments, and the IBMers of those days returned the favor with extra and in many cases extraordinary results.

My observations of recent years convince me that they are transforming the company in a different way. The most important data point was the number of new hires: Around 70,000 without growing the company. When you do the math, normal attrition of a long-career company gives a value around 20,000 to 30,000 employees per year, so the "excess attrition" is around 50,000 now. The new pressure on remote workers is just a new target for attrition.

Rather than being a career company, the new IBM will have three groups of employees. There will be a small elite kernel of career people, but most employees will be in two transient groups. One will be fresh hires right out of university, and most of them will be filtered and eliminated within two or three years. They are essentially forced to look at a fairly large number of needles looking for the sharpest ones. The other group will probably be the largest, consisting of short-term contractors brought in to do the actual grunt work for the actual paying customers. Speedy onboarding and offboarding in the new IBM lingo.

As someone whose career was largely associated with IBM and even as a shareholder, the changes bother me a lot. However it's just part of the evolution of our economic system to evil companies that give us only the "freedom" to seek the least evil options.

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