In a companywide memo sent on January 16, International Business Machines Corp. (IBM) issued a strict ultimatum to its managers who are still working remotely: relocate near an office or face termination. The memo, viewed by Bloomberg, stated that all US managers must immediately report to an office or client location at least three days a week, regardless of their current work location status.

To monitor compliance, IBM will utilize badge-in data to "assess individual presence," which will be shared with managers and human resources, as stated by Senior Vice President John Granger in the memo. Exceptions to this requirement include employees with medical issues or military service obligations.

According to the memo, remote managers who do not live close enough to commute to an IBM facility must move near an office by the start of August. The general guideline for relocation is within 50 miles (80 kilometers) from an IBM office, as reported by an anonymous source familiar with the company's policy.

Managers who are unwilling to relocate and are unable to secure a role that allows remote work must "separate from IBM," emphasized Granger in the memo. This move aligns with IBM's focus on striking a balance between flexibility and the need for face-to-face interactions to enhance productivity, innovation, and client service, as stated by a company spokesperson.

The company's CEO, Arvind Krishna, has consistently emphasized the importance of in-person work. In a May 2023 interview with Bloomberg, Krishna highlighted that promotions within IBM will be scarcer for those who are not physically present in the office.

IBM has already implemented office attendance requirements for certain teams. In a November memo, employees in the infrastructure business unit were instructed to be present at company locations at least three days a week, with managers and executives being expected to have even higher attendance.

As IBM focuses on software and services, while divesting its managed infrastructure, weather, and health businesses, the company provided a positive outlook for 2024 during its fourth-quarter earnings report. The announcement led to a significant increase in the company's stock, marking its best performance in nearly four years.

However, the return-to-office mandate may result in increased attrition, as has been observed in various companies. IBM, which had approximately 288,000 global workers by the end of 2022, has closed several offices during the pandemic, possibly complicating the return-to-office plans for its employees.

Although many companies have tightened their return-to-office requirements over the past year, prompting concerns about limited career advancement or disciplinary action for non-compliance, the actual office attendance has remained stagnant. Data from Kastle Systems indicates that across the ten largest business districts in the US, office attendance has hovered around 50% of pre-pandemic levels, with tech-heavy regions like the San Francisco Bay Area reporting even lower percentages.

Amidst these developments, IBM's move to require its remote managers to relocate near an office reflects the ongoing efforts to streamline operations and expand profit margins. The exact number of managers affected by these new rules remains unknown.

IBM joins other tech industry giants such as Amazon.com Inc. and AT&T Inc., who have implemented similar relocation mandates for their remote workers, demonstrating a wider trend of employers tightening their rules amidst market uncertainties and the risk of job cuts.