Thread regarding IBM layoffs

IBM has to make some desperate changes

I’m not sure you are correct about IBM being over, BUT Ginni still is the CEO so we’ll see. IBM has to make some desperate changes if they are to survive this and come out on the other end. Gerstner dumped 30% of the company to save it. The new CEO will have to do the same. I find it quite curious that IBM dumped their experienced “enterprise” (think Z and big power) technical and sales staff and yet they are betting the farm on making a “hybrid” cloud offering out of Redhat that is going after these exact accounts. Sure seems to me you laid off the wrong folks there Ginni. People buy from people they like and respect. (especially legacy accounts). Guess that kinda slipped your mind when you were listening to the bean counters ehhh. Let’s hope that OpenStack and Openshift get the legacy accounts to move, because IBM can’t survive on 25% outsourcing margins. Yes GTS that’s you in the CFO’s bullseye. I know you don’t want to hear it, but the marketplace has moved and outsourcing (your mess for less) isn’t in scope anymore If a new CEO gets serious, look for 100-120k worth of heads to be sold, or cut. It’s the only way the numbers work

Good point, @10qM2gvg-lxd.

by Anonymous
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Post ID: @OP+10sM7IhR
Comment! It's anonymous!

4 replies (most recent on top)

Yep GTS is already cutting heads since April/May as I am aware. At least in Eruope it started already.
And I assume it will persist till next year for sure. It started slow but now after summer vacation is over I think it will start again in full force. Already managers are doing what they can to find any small mistake technicians did in the past to they can fire them...

by Anonymous
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Post ID: @5chg+10sM7IhR

@iofu you're right. The last two big contracts I worked on had margins of less than 5% (one was 2% because they screwed up the initial bid).

And to the OP, Ginny and Sam have already dumped half what was there when Gerstner took over. All they've kept is SO and Z. Not exactly the cream of the crop.

by Anonymous
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Post ID: @2pai+10sM7IhR

gts margins 25% are you dreaming

by Anonymous
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Post ID: @1ofu+10sM7IhR

IBM still waste money leasing innovation centers with empty cubicles all across the country.
If there were any real bean counters here those centers would have been closed years ago.
Desperate changes are needed? More like obvious changes are long overdue.

by Anonymous
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Post ID: @1xqd+10sM7IhR

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