IBM's Shift: From Job Security to Shareholder Primacy
Summary
IBM, once renowned for its commitment to lifetime employment and generous benefits, underwent a seismic shift in the 1990s when a new CEO prioritized shareholder value, leading to mass layoffs and cuts that marked the end of an era of corporate paternalism.
Key Points
- IBM had a policy of full employment and never laid off workers for over 70 years, providing generous benefits and job security.
- In the 1990s, IBM hired an outsider CEO who prioritized shareholder value, leading to mass layoffs and cuts to employee benefits.
- The shift at IBM reflected a broader corporate trend of prioritizing profits over employee welfare, marking the end of an era.