Another round of layoffs is inevitable. It will come no later than Q4 as AK needs to complete the clean up and try to put the company on the right path. Unfortunately, AK is not the right guy to do that.
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Just google “IBM team race” or “IBM rowing team” to see how this company’s execs think. It’s an old presentation but still valid.
These layoffs were planned in q1 before the virus. Inevitable that a virus correcting lay-off happens in q3/q4.
@lmp I wondered what was behind the consolidation of north and South America. Now it’s clear as day. Ship our jobs to cheaper regions. When does it end?
It is very simple... layoffs will continue until revenue starts growing significantly... it is a simple equation: profit = revenue - cost. If revenue does not grow then cost has to come down to maintain or grow profit. Nobody needs an MBA to understand this.
The likelihood IBM can grow revenue significantly is really slim since it is way behind AWS, Microsoft and Google. The consequence of that is that layoffs will continue at least for a while.
As much as I hate to see anyone loose their job IBM is still so top heavy and needs to trim that down before they cut the people doing the work. They look at the people doing the work and say we can get cheaper labor, having no idea of the skill sets they are dumping. Then they scream there is
a skills gap and put teams in place to figure out what to do and how to deal with the gap. They have been doing that now for 20 years. These "skill gap teams" just come and go.
They get their awards and/or promotions for a job well done, when in fact most times no meaningful solution was found.
The bottom line is - IBM you produce a product(s) and you need the skilled people to make, maintain and sell those products. It does not take the number of VPs you have over see this work. In fact it slows it down, it is called red tape.
This is what’s happening. I work for IBM in Latin America.
Before there was IBM North America and IBM Latin America. Now they are combining both. They will name it IBM America’s. With that said they are combining many jobs like they said in previous posts. They are firing people in the United States because they are shipping then to Latin America for a much cheaper labor. Ir is not true what Human Resources is saying that jobs are being eliminated. They are firing here and hiring in the Latin America for cheaper labor. For example an IBM director in Bogota Colombia makes $3000 a month. I feel bad what they are doing to the IBM American workers. The United States is a great country. There must be a law that protect you.
I’ve heard this is just the start. This round was planned well before COVID, and now they have an excuse to cut deeper. They may say they’re doing this to bring in higher skills in a competitive market, but it’s not like thousands of jobs were pointless. They’re moving those jobs to Costa Rica, India, and other ‘cost efficient’ locations. They’ve already reduced contractor headcount, made them take furloughs, and cut contractor bill rates.
Of course. Its IBM. It would be happening on a regular year, but this year then can get even more out the door and hide behind COVID.
Agreed to previous one. You can bank on another round.. this is IBM!
it's IBM there is always another layoff around the corner.