Reducing overhead. Fire the $150k senior folks and replace for 1/2 the cost.
A younger workforce means they pay less for their health insurance.
This is one of the reasons why it would be good to decouple health insurance from employment.
Exactly, save millions on payroll for new corporate slaves who have no idea how to deal with management.
With people who don’t know crap about the job and them they lose business because of lack of performance.
The NYC Bored of Ed did the same thing to older teachers. They deliberately gave senior teachers low ratings who had always had excellent ratings. They actively recruited the students to write false statements against their [targeted] teachers so that the teachers could be brought up on bogus charges and terminated. Etc. And their new little baby teachers now have no one with more than a few years of experience to look to for answers if they are having a hard time with troublesome kids or lesson plans. Plus, 40% of the newbies leave after 3-5 years, taking what experience they gained to suburban venues, so the students mostly have right-out-of-college baby teachers. Great policy...
Started happening here in DC while I was a DoD contractor.
The Bush 2 administration changed the rules on contract personnel. High tech contracts stipulated the education and experience of most of the people that were to be used on the contract. These were high-end types with pay scales around $100K. The rules were changed so that the companies could hire a Project Manager fitting all the requirements for his/her job then they could hire young people who didn't have a clue to file the other technical jobs, using the Project managers resume to cover the lack of skills/knowledge for the other senior positions. The corporations were still paid for the higher salaries while paying most of the project employees entry-level wages.
I watched as deliverables declined and the quality disappeared. Those big companies would then ask for, and be granted, extensions to complete the work.
I sold my company and left the contracting world at that point. Bush 2 allowed all his corporate buddies to totally dominate the contracting world and not deliver what the DoD needed while raking in more cash.
It was disgusting.
And get half the results.
IBM following the NFL model.
“Reducing overhead. Fire the $150k senior folks and replace for 1/2 the cost.”
...And then prattle on about how modern workers are no longer loyal to their employer.
...and get 1/10 the work.
And don’t forget the AWESOME work ethics of the millennial snowflakes. If nothing else, it would be like working at Comedy Central to be employed there and observe the children.
Hey the giants have been doing this for years ATT started in the 90’s - did away with pensions - started with pittance 401k handouts! Offering few $100k+ for 30 yrs service please!
I'm not real surprised to hear this news about IBM. It's not a place I would want to work.