A new lawsuit claims IBM fired a high-performing white employee and replaced him with two younger, non-white hires to hit “diversity” quotas, exposing how corporate DEI schemes can punish older white workers who do their jobs well.

America First Legal (AFL) and JW Howard Attorneys filed the federal lawsuit on behalf of John Loeffler, 64, who spent nearly a decade at IBM and led a $30 million government project before being terminated under what his lawyers call an impossible Performance Improvement Plan (PIP). Despite years of positive reviews—including a 2021 review praising his “excellent work ethic and support for your teammates”—IBM placed Loeffler on a PIP allegedly designed to fail, forcing him out in the name of “diversity” while denying him earned commissions, according to the complaint.

The lawsuit states that Loeffler’s newly assigned manager, Eric Castillo, admitted the PIP’s goals were “impossible” and that removing Loeffler helped fulfill internal DEI demands tied to financial incentives. After his firing, IBM allegedly replaced Loeffler with two younger, non-white employees to check diversity boxes.

“IBM discriminates in favor of younger workers generally and, in the name of ‘diversity,’ specifically discriminates against white males,” the lawsuit argues, adding that the company’s DEI push disregarded federal laws protecting employees from race-based discrimination.

IBM’s DEI push is not new. In 2021, CEO Arvind Krishna appeared in a leaked video calling for racial and gender quotas in hiring, and IBM’s 2022 report mentioned a “diversity modifier” tied to executive compensation, showing how the company tied ideology directly to bonuses. During a 2023 Webex call cited in the lawsuit, a senior IBM manager allegedly praised Castillo’s efforts to inject “diverse talent,” telling him that if he kept it up, he could expect a long career and many bonuses.

“Mr. Castillo and/or his superiors could receive their full bonus only by removing older white males and replacing them with younger ‘underrepresented’ minorities,” the complaint states.

The case also claims IBM denied Loeffler commissions for the $30 million government deal he led, crediting the work to other “diverse” team members instead.

“It is a profound tragedy that this iconic company has lost its way,” AFL attorney Laura Stell said in a statement, calling IBM “a cautionary tale of what happens when corporations place ideology above the rule of law.”

This is not IBM’s first legal battle over DEI-related discrimination. According to AFL, this marks the third lawsuit against IBM for alleged discrimination against white males in the name of “equity.” The complaint also references the Equal Employment Opportunity Commission’s findings that IBM has engaged in age-based discrimination against older employees.

The lawsuit comes as many corporations, under pressure from activist investors and HR departments obsessed with DEI metrics, face backlash for prioritizing race and gender over merit in hiring and promotions. While DEI advocates claim these policies increase fairness, critics argue they lead to illegal race-based discrimination and degrade workplace performance by sidelining the best candidates for ideological reasons.

Loeffler’s case will test how far companies can go in the name of “diversity” before violating federal civil rights laws, particularly Title VII, which prohibits employment discrimination based on race, color, religion, sex, or national origin.

Conservatives see Loeffler’s firing as another example of corporate America embracing identity politics at the expense of fairness and competence, while older white workers wonder if their decades of hard work and loyalty can be erased overnight by HR departments chasing “equity” quotas.

If IBM loses, it could signal a reckoning for corporations that put ideology above equal treatment and merit, sending a message that American workers cannot simply be purged to fulfill DEI fantasies.