Thread regarding IBM layoffs

IBM Resource Action 2020

Not my thread, here I am recycling 2018 and 2019 threads. Starting early this year. For 2019 and 2018, see @VZzqzzM and @OLbfSBK - not changing anything except years...

I will be the first one to start it – let’s talk about IBM Resource Action for 2020. I know that there are some rumors already floating around, but let’s consolidate things in this thread. In short I’d like to address the following:

  • Timing of Resource Actions – are we going to see quarterly boosts throughout 2020?
  • Size of layoffs – are we going to exceed, in size, 2019 layoffs – should we brace for a mega cut?
  • Geographies – where will 2020 layoffs going to be concentrated? East? West? US vs other geographies?
  • Verticals – What groups will be hit the most as it relates to the upcoming resource actions?
  • That’s all that comes to mind right now – I am sure I am omitting some other important stuff but that’s what I have right now…

Thoughts?

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Post ID: @11JibZyK

16 replies (most recent on top)

@12qjvgFl

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Post ID: @11JibZyK-Igno

every. single. year.

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Post ID: @11JibZyK-Amcw

IBM needs to reduce the building count more than the headcount.

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Post ID: @11JibZyK-3wcr

I can just hear the department meetings , “ We need to reduce headcount, things aren’t going well , can anyone think of reductions we can do by eliminating work ? Think outside the box ok “.

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Post ID: @11JibZyK-3liu

In my part of IBM there have been plenty of senior and executive “involuntary exits”. We’re all victims of the machine, whether junior or senior. Fairly certain IBM has actually targeted a reduction in high level bands and executives. Pushing these people out is done just as arbitrarily and nastily as any other level.

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Post ID: @11JibZyK-3dfv

@2jev yes yes yes! please pray that this happens.
Any “partner” or “VP” or “GM” with 0 direct reports must go immediately!

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Post ID: @11JibZyK-3cwq

IBM during the 3rd q conf call spelled out two problem children. A GTS 4% revenue short fall that will come in the 4th Q, and a 1-1.5% currency headwind. So if we assume Z15 adds a billion to the bottom line, the revenue numbers doesn’t budge. If anything goes wrong, there will be a revenue shortfall. NOTE I didn’t say a profit shortfall, as Z15 should be quite profitable. So you need to ask what are the odds that IBM hits every other measurement. I’m not positive that’s going to happen, thus my betting there will be some Nov -Dec trimming to make the numbers work

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Post ID: @11JibZyK-2glq

Could this be the year that managers and high level staff get hit ? IBM has outsourced just about everything. It will be interesting to see them feed in each other.

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Post ID: @11JibZyK-2jev

Service will again be hit hard . This is a bare bones operation with team leaders and overpaid managers who haven’t a clue what they are doing. The commands come down from the top , cut , cut and cut and we don’t care who it is , you the manager make that happen. 100,000 people got cut who told another 100,000 who told , well you get the picture. IBM is toast , they crossed the line .

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Post ID: @11JibZyK-2sog

IBM internal security processes are nothing but bloat. Trimming them down is long overdue.

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Post ID: @11JibZyK-2ltg

Fact: any company that describes their organizational structure as "matrixed" is doomed. As they should be.

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Post ID: @11JibZyK-2qmi

IBM has pushed all of their chips to the middle of the table. 3rd Q was a disaster from any point of view that you wish to take. (revenue,profit, Redhat, strategic, cloud, etc etc). IBM is betting the farm on Z15 in 4th Q. There is not any other place to harvest revenue or profit, EXCEPT to cut costs. NOTE services has already said during the 3rd q call that they are going to be weak in the 4th. It’s not shaping up the way IBM had primed the street for

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Post ID: @11JibZyK-2xol

Thoughts? You mean Guesses?

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Post ID: @11JibZyK-2cbg

2019 isn't over yet. There will be plenty more before this year is out. Just look at the results.

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Post ID: @11JibZyK-1zvn

For what it’s worth, I’ve heard about a change in the RA policy that would give 60 days notice and 2 weeks severance.
Has anyone heard about Q3 layoffs? My team has been hit by so many budget cuts that we couldn’t have the resources to achieve our goals. I’m concerned.

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Post ID: @11JibZyK-1rve

First

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Post ID: @11JibZyK-1iqv

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