On November 4, 2025, IBM announced a global restructuring that will eliminate several thousand positions before year-end (Reuters, The Register). The company described the cuts as affecting a “low single-digit percentage” of its approximately 270,000 employees worldwide, linked to a continued shift toward software, hybrid cloud, and AI-driven services (Bloomberg; CIO). IBM also stated that U.S. employment would remain roughly stable, suggesting some of the reductions may occur internationally.
Key point: IBM has not disclosed any country-specific figures, and there are currently no formal announcements regarding IBM Canada. However, given the company’s global footprint and history of Canadian workforce adjustments, Canadian employees should stay informed and seek legal advice before signing any termination or severance documents.
- No Canadian data released: IBM has not provided figures for how many jobs will be cut in Canada or which offices or business units may be affected. (No Canadian totals appear in the sources cited above.)
- Timing remains uncertain: The company has not announced when or where international reductions will occur.
- International impact likely: IBM stated that U.S. employment will remain “roughly stable,” which suggests a portion of the reductions will occur in other countries, potentially including Canada (Reuters).
At this stage, no formal IBM Canada announcements or regulatory filings have been issued. Employees should monitor internal communications and external news sources closely for updates.
Who May Be Affected in Canada?
- Corporate / office and professional roles — administration, marketing, finance, PMO.
- Technical and engineering functions in areas with legacy infrastructure or consolidation (The Register, CIO).
- Regional operations depending on project pipeline and global demand.
IBM Canada’s major offices are located in Markham (headquarters), Ottawa, Montreal, Calgary, and Vancouver. While IBM has not confirmed location-specific impacts, reductions could involve employees across its corporate and technical divisions in these regions.
Your Rights if You’re Laid Off or Terminated
This information is for non-unionized employees in Canada who have been laid off or terminated and want to understand their rights before signing any documents.
If you are part of a union, you should contact your union representative.
Non-unionized employees are protected under both the Employment Standards Act (ESA) and the common law. While the ESA sets minimum termination and severance entitlements, many employees are owed significantly more under common law, depending on their length of service, position, and the availability of similar employment.
- Reasonable notice or pay in lieu: You may be entitled to more than the statutory minimums provided by the ESA.
- Benefits and compensation: Ensure your package clearly outlines how salary, bonus or commission, vacation pay, pension, and benefits continuation are treated.
- Time to review: Do not feel pressured to sign a severance agreement immediately. Take the time to obtain legal advice before accepting any offer.
Severance Packages for IBM Employees
If you are laid off from IBM, you may be entitled to severance pay. In Canada, severance is calculated based on several key factors, including:
- Length of service
- Age
- Position held
- Availability of similar employment in the market
It is crucial to carefully review severance offers, as they may not always reflect the full amount an employee is legally entitled to receive. Companies often provide the minimum statutory severance, which may be far less than what an employee could claim under common law.
Wondering what you’re owed? Use our Severance Pay Calculator to quickly estimate your entitlement based on your age, tenure, and role.
Potential Issues with Layoff Notices
Layoff notices from IBM may not always comply with Canadian employment laws. Common issues include:
- Insufficient notice periods – Some employees may not have received adequate notice as required by law.
- Improper termination classifications – Some layoffs may be labelled as “temporary,” despite functioning as permanent terminations requiring full severance pay.
- Severance offers that don’t align with legal entitlements – Employers may initially offer severance packages that do not reflect full entitlements under the law.
Common Red Flags in Layoff Packages
- Short deadlines to sign releases without time to seek advice.
- “All-inclusive” offers that don’t explain how amounts were calculated.
- Missing details on benefits continuation, bonus/commission treatment, or vacation pay.
- Ambiguous “temporary layoff” language where no realistic recall is expected.
Wrongful Dismissal and IBM Layoffs
If your termination was not handled properly, you may have grounds for a wrongful dismissal claim. This could include situations where:
- You were not given adequate notice or severance pay.
- You were pressured into accepting an unfair settlement.
- The layoff was discriminatory or retaliatory in nature.
Notable IBM Wrongful Dismissal Cases
A notable example is the Ontario Court of Appeal’s decision in M. v. IBM Canada Ltd., 2023 ONCA 702. The court upheld an exceptional 27-month notice period for a long-service IBM employee dismissed during the early stages of the COVID-19 pandemic. The court found that the employee’s age, lengthy tenure, IBM-specific skillset, and the challenging economic environment made securing comparable employment significantly more difficult. This decision demonstrates that employees at large corporations like IBM may be entitled to more than the typical 24-month upper limit and substantially more than what is often offered in an initial severance package.
Another important decision involving IBM is M. v. IBM Canada Ltd., 2025 ONSC 3860. In that case, IBM sought to strike portions of the employee’s claim, including allegations of systemic age discrimination tied to wider corporate practices. The court refused to do so, holding that those allegations were relevant, plausible, and allowed to proceed. This case confirms that employees can rely on evidence of broader patterns of discrimination when those patterns form part of the context leading to their own dismissal.
Another important IBM case decision is IBM Canada Limited v. W., 2013 SCC 70. The Supreme Court of Canada held that employers cannot deduct pension benefits from wrongful dismissal damages. This means a defined-benefit pension — such as those commonly held by long-service IBM employees — cannot be used to reduce the compensation owed following a termination.
Together, these decisions highlight the importance of reviewing severance and compensation packages carefully, particularly regarding notice periods, bonus and pension treatment, and release agreements.
Monkhouse Law Employment Lawyers have extensive experience helping employees challenge unfair offers and holding large employers accountable for wrongful dismissal.
How Monkhouse Law Can Help
- A free 30 minute phone consultation
- Skilled negotiation to help secure fair compensation
- Representation in wrongful dismissal claims if your termination was not handled properly
Contact Us for a Free Consultation
If you are laid off from IBM, don’t sign anything before knowing your rights. Contact Monkhouse Law Employment Lawyers for a free phone consultation and ensure you receive the compensation you deserve.