The fact that IBM has started relocating its employees to six selected cities in the US was first published by the The Wall Street Journal on 18 May 2017.
It was subsequently covered by many other forms of media focused on the labor market and modern technology. IBM itself hasn't officially commented on the matter yet.
Who has to return to the company?
The remote working ban was launched in the US. So far, there are about 2,600 employees from the marketing department and a further unspecified number of employees from the IT department, public procurement, and several departments working on the development of the Watson system.
At the beginning of February, the company announced they had to move to one of the offices located in New York, San Francisco, Austin, Cambridge, Atlanta and Raleigh. They were given one month to decide. If they decide not to move to the office, they have 90 days to find another job within IBM or leave.
According to the Society for Human Resource Management (SHRM), the employees who decide to leave will be paid one month's salary, which is standard for IBM. Then the company will look for new employees to replace them directly in the six cities.
What's the reason for the change?
The company has been around for 105 years and currently employs 380,000 people around the world. Its remote working program has enjoyed great popularity for decades. The company also used to promote remote working among its customers and the business world as a whole. Last but not least, IBM saved large sums on rental costs and earned a lot by selling real estate. The current decision is, therefore, quite surprising.
TechRepublic.com says that until recently, IBM presented itself as being proud of having 40% of their employees working remotely. As recently as on 4 May, we could read a new article on the company's blog about the benefits of working remotely using IBM software solutions. Now, the company perceives closing home offices as a promising way to improve collaboration and a faster pace of work.
Analysts asked by TechRepublic.com, however, speak about the significant impact of IBM's efforts to reduce costs in connection with the company's economic results which have deteriorated since 2016.
Foxbusiness.com pointed out that IBM experienced 20 consecutive quarters of revenue declines, and its shareholders were recently outraged by the bonus of the CEO Ginni Rometty.
Businessinsider.com quoted an IBM spokesman who said earlier that the company is following modern trends in the industry where small teams are now performing best when addressing immediate needs and changes face to face.
Will it be a change for the better?
IBM's Chief Marketing Officer Michelle Peluso has reportedly sent an internal video explaining that when people work side by side, teams are stronger, more influential, more creative, and more enjoyable.
The UK server The Register reported that IBM plans to call remote employees back to offices not only in the US, but also in Europe. They also confirmed that they saw the IBM video by Michelle Peluso, which they described as propaganda to hide the fact that the company needs to get rid of some employees.
A labor law expert asked by SHRM noted that calling employees back to traditional offices is a reaction to the company's profit loss or failure to meet established organizational goals.
According to Fastcompany.com, the decision may backfire on IBM for three reasons:
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It may reduce the quality of IBM teams since the best people who can easily find work elsewhere will leave.
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Office work may reduce productivity since remote workers are more efficient, more satisfied and more loyal in the long run.
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The company chose a time when American rural areas and small towns are struggling with the outflow of labor, which undermines local economies.
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