Thread regarding IBM layoffs

IBM is once again heavily reorganizing; Hundreds of jobs at risk at IBM Netherlands

Two links on latest news from the Netherlands (only quoted complete text of the shorter article, but providing both, as first one has some extra details).

IBM is once again heavily reorganizing –
https://translate.google.com/translate?hl=en&sl=nl&u=https://www.cnvvakmensen.nl/caos/metalektro/cao-metalektro/nieuws/ibm-reorganiseert-wederom-fors

https://translate.google.com/translate?hl=en&sl=nl&tl=en&u=https://www.nu.nl/economie/6123549/honderden-banen-op-de-tocht-bij-ibm-nederland.html
Nearly a thousand jobs are expected to disappear at IBM Netherlands. The technology company would like to cut 560 jobs in the Netherlands and transfer another 430 employees to a new spin-off from IBM.

Trade union CNV was previously informed by the Amsterdam-based IBM about the interventions. According to the union, a voluntary severance scheme will be set up first. After that, the company will proceed to redundancies.

CNV finds the reorganization too severe and very sad for the employees who are affected. The union also finds IBM's approach dubious.

According to CNV, this mainly concerns a specific passage from the social plan. IBM gives an employee fourteen days to accept the termination settlement agreement and thereby take advantage of certain 'benefits'. But anyone who appeals against the dismissal immediately loses that right. Employees then fall back on the statutory transition payment.

CNV has called these kinds of practices unacceptable for years. According to the union, an employee should be able to appeal without consequences. IBM's move is legal, a spokesman for the union told NU.nl. "Only when a union member and employee decide to challenge this in court do we have a leg to stand on. However, many of our members at IBM don't want to stand up."
Company pledges to invest in staff training

An IBM spokesman declined to comment in detail. In a statement, he does say that decisions about jobs are made to ultimately be able to support customers as well as possible. The money saved is reinvested. IBM further emphasizes investing "significantly" in staff training and development.

The group has already intervened heavily in other countries. In total, eight thousand to ten thousand jobs at IBM are disappearing in Europe. The interventions should reduce costs in the slowly growing IT services branch. IBM had 350,000 employees worldwide at the end of last year. The company has offices in more than seventy countries, including the Netherlands. The concern has been active here since 1940.

IBM is best known for its contribution to the development of the hard disk and the so-called personal computer. The PC business has been in the hands of the Chinese Lenovo since 2004.

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Post ID: @OP+1a2hulUW

4 replies (most recent on top)

What would you expect when the CEO is from India...

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Post ID: @hff+1a2hulUW

I believe this tips IBM’s hand for the on going future
25% layoffs (I would think systems would be excluded since there are no factories in the Netherlands), but GTS, GBS, and cognitive most likely play
90k heads going out the door to Newco after the layoffs.
Systems will most likely partner out with a GF type deal This would include manufacturing, sales, and channel

All in all you need to remove the head count in India, then do the math. Assume 1/3 of IBM’s population resides in India or approx 115k

So 230k x .25 = 55-60k heads (eyes your mileage may vary here depending on India) This number seems to be consistent with IBM’s previously announced restructuring charges

The other wild card piece is if IBM wants to exit manufacturing I suspect they will exit it only for scale out while keeping the mainframe. That would result in an approx 15-20k head count reduction

The final “new Hybrid” IBM would be 346 - 57k (layoff), - 90k (newco), - 20k (partner off) = 180k with 115 residing in India

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Post ID: @kaa+1a2hulUW

IBM’s goal is nobody left in the West.

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Post ID: @gdt+1a2hulUW

Watson would be rotating in his grave if he knew how lousy IBM now treats current and former employees!

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Post ID: @uof+1a2hulUW

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