More IBM mass layoffs coming – This time to the Netherlands in a first

Still work at IBM? Read this statement and weep. You have been warned.

“In today’s world , those who do not keep reinventing themselves, fall behind. The demand of the market for new skills and capabilities, is changing fast due to new technologies and changing business models. Our customers have a need for new insights, knowledge and capabilities, making the existing expertise redundant. That is why the optimization of our workforce is a permanent and ongoing part of our business model.”

That warning is part of a leaked document, executives at IBM Netherlands describe how “Resource Balancing 2016” i.e. job cuts – are hitting that business group for the first time. The resource action, as IBM calls layoffs,could affect “several hundreds,” a source tells Watching IBM at Facebook.

Why layoffs are a recurring sad story at IBM, what makes this latest disclosure really interesting is:

• The leak of the internal memo
• The fact it’s taking place in a country where IBM has not had to resort to mass firings before in order to reduce/reshape its work force

A mass involuntary RS is “unique in the history of IBM Nederland,” the documents says.

“In the past IBM implemented successfully voluntary leave programs. This time the number of places we need to rebalance is too large.”

Workers will begin finding out Sept. 1 if they will lose their jobs – become redundant or surplus, in Euro terms – and layoffs will take place in three “waves.”

The Facebook site, which was set up by longtime union activist and retired IBMer Lee Conrad, continues to attract international media and reader attention as news is posted about job cuts being made under Chair and CEO Virginia Rometty’s restructuring of the tech giant.

The focus is on 3 pillars: engagement, data, and the cloud.

IBMers are not represented by a union in the Netherlands, just as they aren’t in the U.S., but by a workers’ “council.”

“This is a tough message, and I understand this creates a lot of uncertainty and even more questions,” the document reads. “That’s why we, the management and workers Council, find it important to strive for an open and transparent communication. We urge you to take your questions and concerns to your managers. They are more than able to clarify to each of you what these changes mean; for you and for the organization.

In a comment to the International Business Times, an IBM (NYSE: IBM) spokesperson confirmed the job action.

“Pioneering emerging areas of the IT industry, such as cloud and cognitive, requires IBM to continually remix skills – our clients expect no less as they look to IBM to help them take advantage of innovations and new technologies,” the unidentified IBMer said. “IBM continues to hire aggressively, especially in the key skills areas.”

IBM has cut an unknown number of jobs across the U.S. and Canada in two “RAs” at least this year. The company also insists it has a large number of job openings.

Read more at:

Text of the document

Here is the text of the document as published at Watching IBM:

All,

As all of you know, in March IBM Nederland started an information and consultation process with the Works Council about rebalancing our workforce. I like to inform you in detail about the context, the process, the current status and the next steps of our Resource Balancing program 2016. Let me first describe the context.

To remain competitive in the market, we need to align ourselves with the 3 pillars of IBM’s Global Integrated Enterprise strategy and move labor to the IBM Delivery Centers abroad and to standardize and automate work and processes. Next to that we see that the transformation of our business is a continuous and permanent characteristic of our business model. In today’s world , those who do not keep reinventing themselves, fall behind. The demand of the market for new skills and capabilities, is changing fast due to new technologies and changing business models. Our customers have a need for new insights, knowledge and capabilities, making the existing expertise redundant. That is why the optimization of our workforce is a permanent and ongoing part of our business model.

In essence it means rebalancing the number of employees currently working for IBM in The Netherlands and this through an involuntary program. And that is unique in the history of IBM Nederland.

In the past IBM implemented successfully voluntary leave programs. This time the number of places we need to rebalance is too large. The impact of another voluntary leave program will weigh heavily on the organization. We would need to address too many of our co-workers to realize the reduction we envision. An involuntary program allows us to implement a very targeted program, impacting only those employees whose job will be made redundant or made redundant by IBM’s transformation. We do not see any other option than to rebalance our workforce through an involuntary leave program. And that is a hard call to make.

To this end, we have informed the Dutch Works Council in March about our intention to rebalance the workforce. We initiated an information and consultation process via a Request for Advice. The past couple of months both IBM Management and the Works Council have been working closely together. We also started the discussions with our Works Council to set up a Social Plan in which we have described the solutions we will offer to the employees affected by this Resource Balancing Program. I can inform you now that information and consultation processes including the Social Plan negotiations with the Works Council in The Netherlands are finalized. We have jointly come to an agreement regarding our intent to implement a Resource Balancing Program for 2016.

Allow me to thank every member of the Works Council and the IBM negotiation team for the effort they put in these discussions and negotiations in the last few months.

So, let me tell you more about how we will implement the Resource Balancing program:

In accordance with the Collective Dismissal Act, next week we will inform the Governmental Labor Agency and we will consult the Trade Unions about this program. After meeting these Collective Dismissal Act obligations, the Resource Balancing Program will start on Sept. 1st.2016. On this date all affected employees will be informed by their Bluepage manager in a personal conversation that they are affected by the Resource Balancing program and when their job will become surplus. At the same time the manager will hand over the letter of notification.
Ultimately 6 weeks prior to the surplus date, the impacted employees are invited for a meeting with their manager and a representative from HR, in which the Social Plan, including the Work-to-Work arrangements, are explained.
The Social Plan will be placed on Connections by Human Resources and made available for all employees of IBM Nederland.

During July and August, all administration is prepared.

Information sessions for impacted employee’s are planned. These sessions will be organized after the start on Sept. 1st. is done and will focus on the support that will be given by the IBM Career Center and the IBM Outplacement Partner during the program. More information will follow in the coming months. So, notification date is September 1. The impacted employees will then leave IBM in three waves. The first round will start November 1st the earliest.

This is a tough message, and I understand this creates a lot of uncertainty and even more questions. That’s why we, the management and workers Council, find it important to strive for an open and transparent communication. We urge you to take your questions and concerns to your managers. They are more than able to clarify to each of you what these changes mean; for you and for the organization.

I do realize that by far the most important question now is whether you can keep your job. We can’t answer that question yet. All affected employees will be informed on September 1st about their notification and when their employment at IBM will end.

Do know that both management and workers council balance the interests of our company and of our employees with a human and responsible approach. To keep you informed, we’ve created in the Benelux community in Connections, a dedicated sub-community for the Dutch employees only.

Again, if you have questions or concerns, please talk to your manager.