Kyndryl Employees Allege Age Discrimination Amid IT Firm’s Search for ‘New Blood’

A former business development executive who worked at IBM and its spinoff company Kyndryl joined a lawsuit accusing the employers of age discrimination. The original complaint was filed by a former Kyndryl global software director. The case highlights the unlawful treatment that older workers may face in the California tech industry, which is generally known to favor a younger workforce.

The new plaintiff in the age discrimination case is Tony DeGruccio, who worked at IBM for over two decades before transitioning to Kyndryl. DeGruccio, who was laid off at age 60, cited age as the alleged motivating factor for his employment being terminated.

In California, workplace age discrimination is prohibited under both state and federal laws as age is identified as a protected personal characteristic. Age discrimination occurs when an employer treats an employee or job applicant who is 40 years old or older less favorably because of their age.

It is illegal for employers to discriminate against workers or job applicants based on age in any aspect of employment, including hiring, firing, promotions, compensation, benefits, training, job assignments and layoffs. Employers are also barred from retaliating against workers who report discriminatory treatment at work.

In this case, the alleged age discrimination was linked to company-wide layoffs. Kyndryl and IBM each announced layoffs last year, saying they would affect a “small percentage” of workers worldwide.

The lawsuit accused both companies of engaging in discriminatory practices. Older employees, like DeGruccio, were allegedly unfairly targeted for termination as part of a broader strategy aimed at infusing the workforce with “new blood.” Older workers were allegedly denied opportunities for advancement within the organization.

The lawsuit accused Kyndryl of playing an active role in seeking to fill open positions with younger employees. The company allegedly made sure that older employees left the company by preventing them from obtaining open positions. The alleged preference for youth over experience not only marginalized older workers but also deprived them of fair consideration for opportunities within the company, according to the complaint.

When DeGruccio found out he was being laid off, he spoke with his manager. The manager allegedly told him it was pointless to look for other available positions at the firm as Kyndryl was searching for younger workers or “new blood,” the lawsuit said. DeGruccio allegedly saw older workers being rejected for positions even though they had the required qualifications. 

Despite the mounting legal scrutiny, both Kyndryl and IBM defended their actions. They denied any discriminatory intent behind the planned layoffs.

Age discrimination claims often arise in the tech industry. In an era where innovation is often equated with youth, experienced professionals find themselves increasingly undervalued and facing unlawful discrimination.

Regulatory bodies such as the Equal Employment Opportunity Commission (EEOC) play a crucial role in holding companies accountable for discriminatory practices. In 2022, the EEOC saw a 20 percent increase in discrimination claims compared to the year before.

IBM has been sued numerous times for age discrimination since 2018 when it was reported that company leadership carried out a plan to de-age its workforce. The IT giant has consistently denied the charges despite EEOC findings to the contrary and confidential settlements.

If you believe you have been subjected to age discrimination in the workplace, seeking legal guidance is essential. Filing an employment claim allows you to pursue compensation and urge your employer to change their unlawful practices.

While McCormack Law Firm was not involved in this case, our San Francisco employment lawyers stand ready to provide you with skilled legal representation. Contact us today for a free consultation to explore your legal options.