If you disable it from the Options, then IP Logging is totally removed from vBulletin. Ofcourse i can not predict if the same goes for all modifications you have installed.
Turning it off will however not removed already logged IP's from the database, that is some you would still need to do.
I feel however that you are trying to solve the wrong problem. Your problem is not that IP's are being logged but that you can not trust your staff. I would address that issue as your staff problems are most likely not only limited to leaking IP addresses.
PS You can ofcourse also limit who can view them with the permission settings.
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