Thread regarding IBM layoffs

What do IBMers outside the USA have for retirement/savings plans? Anything?

Perhaps because IBM is trying to to outsource most of the work lately? If you have an existing 401k and you become US-based, I imagine you would be like everyone else here in the US - still have your 401k, but zero company match. You will need to put more of your own personal money into it to compensate for their lost match in the market, and would perhaps benefit from also creating yourself a Roth IRA as well outside of the company where you can also contribute up to IRS limits to help yourself out and try to save. Basically the onus will be on you to pick up the lost 6% match which would of added to your gains at market rate versus RBA much lower fixed rates. Take a look at the RBA modeler link internally or available on us benefits slack and also calculate what you need for retirement using a retirement calculator (ie nerdwallet.com has a great one as do other places). Hire a financial advisor if you are not able to calculate on your own though.

Why was this changed for USA employees only? So what happens if an IBMer in another country with the IBM 401K benefit transfers to a USA based position?

For those who have been at IBM long enough to where they have a cash pension can easily see the anemic returns there versus investing the companies contributions in the market…huge difference in returns over a long period of time that now IBM will likely try to make for themselves. Greed at the expense of the employees

Can confirm. People are so upset they’re announcing their intentions in internal slack forums, hoping they are wrong and someone/anyone cares. I have manager level colleagues pinging me that it’s a dirty cash grab move by our execs. Harsh life lesson for us all- we are not a community or family, the leadership teams only care about themselves only, workforce being pushed to India, and in a way maybe this is good for us all because any company that can treat their employees like such garbage and think we are this stupid doesn’t deserve the talent. My coworkers are insanely talented but I’ve noticed a lot of people who have been here a while tend to be complacent and were the rest and best type. If you are d-mb enough to accept that trash RBA plan that will track 10 year US treasury rate (current estimate 4.44%) and cannot do your own math to understand how you will be into Ted then maybe IBM is the place for you long term. Personally I plan to spend my holidays getting back to all my contacts at other companies and refreshing my CV asap. Always said the best thing about IBM is the coworkers second best was the 401k match. Certainly never the comp or growth opportunities (lol). Without the 401k I think a lot of younger people with half a brain will bounce. HR chatbot can’t save you from the only holiday present IBM will give us, a giant sh*t Sandwich. It’s just enough already. I am past caring about unionizing because just when you think it can’t get worse, it does. Who would really want to stick around for Arvind’s next moves?

The 401k change is already hitting them. Potential new hires saying thanks but no thanks, and young workers planning their exit at the very latest once the guaranteed 6% return ends.

@1rhi - Updated Link:

https://www.morningstar.com/news/marketwatch/20231119238/ibms-new-401k-strategy-could-threaten-retirement-plans-for-its-workers

My best advice for those still at IBM: Find another employer that appreciates you because the abusive management at IBM certainly doesn't, and the situation isn't going to get any better. 😕

We got slammed by Morningstar. Embarrassing.

https://www.morningstar.com/news/marketwatch/20231119212/ibms-new-401k-strategy-could-threaten-retirement-plans-for-its-workers

What incentives are there to even stay at IBM as an employee anymore? Let’s see:

• no 401k
• forced return to office, in offices that are not maintained and missing even basic facilities- to go Webex 8 hours a day in a glass cubicle if one is even available otherwise you are in the mix with everyone else talking meetings at their desk. Productivity? Collaboration? Not so much. Distraction and needless carbon emissions? Yes.
• fewer and fewer US based roles so internal transfers not possible
• no perks, so IBM funded lunches or events for employees, nothing. Not even a holiday party for us.
• gaslighting and lying leadership and execs. Don’t get me started on Arvind.
• Constant pressure to deliver faster and faster and faster with absent PM and no leadership. Products that are being released that aren’t meeting quality standards. Devs being told to “triple developer output” how ludicrous while laying off our teams and no backfills.

Help! Jump before you sink.

@nvy - We're certainly not going to get the best and brightest. IBM management's personnel strategy has changed over the years to hire folks who are the cheapest and meet the bare minimum requirements of the job. Just take a look at the latest cohort of schlubs being put into management ... 😕

IBM has been "de-investing" (going to cash) for many years. Executive management has been thrashing...they jump from one hot trend to the next, but they don't spend enough time or effort on any one thing to see it through. Lou Gerstner was the last CEO to hit a big one with services, but all the CEOs after him are known more for selling divisions than building any up. (No, buying a company doesn't count...you have to actually build up a working business.)

If IBM wants to keep someone around, then they'll find the incentives to do so. Most people do not fall into this category. Nothing personal, but the company is run more like a hedge fund these days than any kind of tech company. In that kind of environment, just about everyone in the food chain is expendable.

This will really hurt the folks that to their own detriment will forego saving in a 401k because there is no match….oh well

yes, who is going to want to work for IBM. No 401K match is definitely not going to help recruiting people.

This change indicates IBM is taking a shorter term view of its competitiveness / investment position within the USA vs its USA based competitors. All things being equal for a qualified hire, IBM has positioned themselves within the USA at a disadvantage. That tells me less new investment will go into the USA workforce, and more investment will be offshored.