Corona Virus wil be IBM’s free ticket to reduce staff aggressively within a couple months.
As market uncertainty is causing clients to put project on hold, financial impact can (will) be huge. This will trigger yet again mass lay-off’s in all business lines and geo’s.
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3hml. There most likely isn’t a problem with the purchase, or we would have seen Whitehurst and other Redhat exec’s show their intentions already. Whitehurst’s taking the presidents role was a big tell, that the plan is being executed and that the talent pool is fine. NOTE folks leaving are always baked into a major announcement. There is typically 20-25% movement baked into any major announcement. My guess by the end of 2nd q almost all of the reorg / selloff / streamlining will be public. That’s when you will have a full view of what IBM wants to be when it grows up, and where it’s heading. It will take till end of year for the plan to be completely executed
@2gva - yes, IBM hired it but they're leaving in droves to VMW among others. The red leadership is crowing about how its not happening but look it up. The main dev leader of RH's goldenchild of the moment openshi*t....whoops....openshiFt. Sorry...it happens a lot inside. Every day you hear on memolist, but never from management, about how chief architects are running. Look at who joined Nuvia as well
IBM did hire new talent. They paid 34 billion for it. You are now watching IBM implement that new talent into IBM. As that new talent comes on board, the old IBM will be downsized. That’s the plan, and it’s being ruthlessly executed.
Or maybe IBM can just stop the RAs, hire additional talent and become relevant again. This could be time for our management to think about that. Although with brain-dead executives changes are slim.
IBM, like every other company, can blame bad earnings on Corona; Wall Street expects this and any hit to share price will be short term.
If iBM leadership had any soul; they would simply delay any Resource Action until after this Virus Scare blows over. e.g. Instead of the End of March, do it the end of June
3 months extra work for an employee makes a big difference.
The amount of extra $$ this will cost IBM is like the average joe losing $20.
True, but IBM needs to reduce staff in areas that are bloated so this speeds up that process as well.
I can confirm that the people complaining the loudest for a travel ban at the first sign of coronavirus were executives in Services. Anything to cover up for their poor performance. Sad!