IBM's organizational transformation continues as the company deepens its focus on AI integration and operational streamlining. With thousands of positions affected and more changes anticipated, understanding the landscape of severance packages becomes essential for employees navigating this transition. While the company expands its software engineering and sales teams, it's simultaneously reducing administrative roles through automation. By sharing your severance offer on fired.fyi you can gain insights into how your package compares to others, empowering you to negotiate effectively.

IBM Layoffs 2025: Current Landscape

The scope of IBM's organizational changes has been substantial. Between September 2024 and March 2025, the company has reduced its workforce by approximately 13,000-17,000 employees across two major waves: 8,000 to 10,000 in September 2024, followed by 5,000 to 7,000 in March 2025. These adjustments reflect CEO Arvind Krishna's vision for IBM's evolution, emphasizing AI integration while streamlining back-office operations, particularly in human resources and administrative functions. As this transformation unfolds, further workforce adjustments may emerge to align with IBM's strategic direction.

Understanding IBM's Severance Evolution

Pre-2016 Approach

IBM's historical approach to severance was markedly different from current practices. Before 2016, the company offered more substantial packages, with severance extending up to 23 weeks based on tenure.

The 2016 Standardization

A significant shift occurred in 2016 when IBM introduced a standardized severance structure. According to IBM's "About Your Benefits - Separation" document:

"The separation allowance payment available under the Individual Separation Allowance Plan, regardless of the circumstance under which ISAP is offered, is one month of pay."

Post-2016 Experiences

Employee experiences since 2016 have shown consistent patterns:

• The 2018 workforce reduction included a 90-day working notice period followed by 30 days of severance pay.
• During the 2019 reductions, employees reported receiving 30 days' notice accompanied by one month's salary as severance.

Key Variables in Package Determination

Several factors can influence severance terms:

• Regional variations due to local employment laws
• Role-specific considerations despite the standard one-month baseline
• Evolving corporate policies shaped by market conditions and strategy shifts

Employee Perspectives

The range of employee experiences reveals additional patterns:

• Performance Improvement Plans (PIPs) have sometimes preceded terminations, with some employees noting unrealistic performance targets
• Age-related concerns have emerged, with reports of older workers being offered severance packages contingent on training their replacements

Industry Comparison

Looking at peer companies provides valuable context:

Google

Google matches IBM's approach with 16 weeks of base pay plus two weeks per year of service, but offers extended stock vesting periods valuable for senior employees, along with six months of healthcare coverage and transition support.

Amazon

Amazon's package structure provides 2-3 months of base pay, with additional weeks based on tenure (one week per six months served, capped at 20 weeks). Healthcare coverage aligns with the calculated severance period.

Microsoft

Microsoft's approach combines elements of both models, typically offering two months of base pay plus one week per six months of service, accompanied by six months of stock vesting and COBRA coverage support.

Looking Ahead: 2025 Severance Expectations

While specific terms may evolve, historical patterns suggest likely components:

Financial Components

Based on past practices, employees might anticipate:

• A working notice period extending up to 90 days
• A one-month salary lump sum payment upon completing the notice period

Healthcare Continuation

COBRA coverage options remain available, though costs typically transfer to the employee.

Variable Elements

Package details may vary based on:

• Geographic location and applicable labor laws
• Individual role specifications and tenure
• Ongoing policy adaptations reflecting IBM's strategic priorities

Moving Forward

While IBM's formal announcement will provide definitive details about this year's severance terms, you can gain valuable insights by submitting past severance offers to our comparison database. Understanding how packages stack up across the industry empowers you to evaluate and potentially negotiate your terms effectively. If you receive a severance offer, sharing your package details not only helps you maximize your outcome but also assists others in similar situations.

Remember that collective knowledge strengthens everyone's position - the more data we gather, the better equipped the community becomes to navigate these transitions. While the process may feel overwhelming, you're not alone in this journey. Should you have questions about your specific situation, consulting an employment attorney can provide clarity and direction.

We're here to support you through this transition, and together, we can help create more transparency around severance practices in the tech industry.