Thread regarding IBM layoffs

Horrible IBM results, lower net profits, massive layoffs coming

Remember analysts expectations and "beat" of such set lower targets mean nothing. Bottom line is that IBM had only 1% revenues growth vs a year's ago quarter, with one full year for AK's ascending to the CEO thrown. But the net earnings declined suggesting cutting prices to sell more. Horrible.
This while true cloud companies had a fantastic growth under the corona increased demand for cloud and digital transformation.
The leftovers IBM picks during the best times for cloud suggests AK is going on the same path as Ginni or worse. In a year 1% growth? So AK needs 10 years? Get someone else please not an IBM's lifer.
Lower net profits vs a year ago will lead to layoffs to reduce costs. We've heard 10000 out of the EU 90000 IBMers notified of the layoffs with unions there taking action. So over 10% layoffs will happen all over the world, US, Asia etc.
Very sad times the BoD failing the employees, the shareholders and the customers.
Totally not impressed by paying $34B for Redhat vs the noise results from their purchase especially for such a high price. No ROI seems feasible regardless of the hype. Question is will AK last years like Ginni or let go within 3 years? For now the damage continues unfortunately.

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Post ID: @OP+1asPl57g

18 replies (most recent on top)

Expectations are a joke... IBM is dead money and will finish 2021 with lower revenues.

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Post ID: @4ixf+1asPl57g

"Anyone can beat expectations if they're set low enough! "

The whole expectations game strikes me as backwards...

Why aren't the analysts punished when their projections are wrong... instead of the companies? LOL!

Seems to me if analysts' estimates are off... the analysts suck at be predictive...

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Post ID: @2hen+1asPl57g

I feel bad for the ignorant people responding to the IBM post on LinkedIn boasting about how good the results were! Most were IBMer's or people who gain from a close relationship with IBM. People believe what they want to believe, but reality (whatever that may be) wins out in the end.

I guess it also indicates on a grand scale that only a very small percentage of IBMers and its followers, participate/read/know of this website, or care to do their own research, and (choose to) believe what the corporate officers say – whether it be right or wrong.

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Post ID: @2klp+1asPl57g

"...AK's ascending to the CEO thrown..." You meant THRONE, but you're right about 1Q21 results. Anyone can beat expectations if they're set low enough!

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Post ID: @2vqu+1asPl57g

Sell GBS , get rid of TSS , kick Storage out...that's all !!!! they are just disease..1 results was bad , stock goes up because market was expecting horrible results, at the end we see only bad results.

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Post ID: @2ydu+1asPl57g

Results were good, stock was up. What are you talking about bad results mate? Are you upset your keeper didn’t give you a raise?

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Post ID: @1pli+1asPl57g

@wzy has a good point. When does IBM smell so bad that no one from outside the company wants to take a high level job? Are we doomed forever with IBM lifers?

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Post ID: @vpm+1asPl57g

@lvb thanks. For that new link. Another error this time on session and its key, but I guess i will arrive to the document, with patience. The Sec is Sec. justia maybe not ;–)

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Post ID: @qrd+1asPl57g

@cbh
https://sec.report/Document/0001558370-21-001489/ibm-20201231xex10d3.htm

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Post ID: @lvb+1asPl57g

Did GTS decline? No mention of it in the results. I guess the kyndryl disease doesn’t matter.

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Post ID: @rpz+1asPl57g

@mtc the link answers so "Page not Found" .. someone was quicker to erase the tracks .. or they had already covered their clothes ..uhm

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Post ID: @cbh+1asPl57g

JW's retention package is a matter of public record:
https://contracts.justia.com/companies/ibm-700/contract/157102/

  • End of Year 1: $2M Cash
  • End of Year 2: $2M Cash
  • End of Year 3: $2M Cash + $5M Stock
  • End of Year 4: $10M Stock

This July is End of Year 2. Then 2 more years of resting and vesting. Then he'll move on.

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Post ID: @mtc+1asPl57g

"I'll be surprised if Whitehurst sticks around. He can see the iceberg and can easily escape before he is tainted."

Whitehurst is already looking/advertising for his new/next job... just look at his too many postings on LinkedIn... May be he wants to go to Microsoft!!

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Post ID: @cqj+1asPl57g

@haa+ given the enormous industry growth the past year, taking a nugget whatever you can get is not close to be satisfactory. In constant currency revenues were down. The dollar is weak so it's an illusion. I don’t see AK has done anything. A year is a lot of time. Check Lou Garstner's performance as a benchmark. AK place holder for what? It's not yet urgent to make a change to afford 3 years with AK? The action AK has done could damage IBM more than his 3 years, with the next CEO refusing to take the job. Redhat is an example that could ruin IBM as it hasn't done much for the price paid. The IBM split is another AK move. The BoD shouldn't play with place holders. It needs urgent leader to act urgently. Sorry no 30 days 90 days and one year plan successful in my view. I give AK an F on his report card and recommend the student is moved out to a different school. No engineering resume for AK past glorious cloud success are real in my view.

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Post ID: @wzy+1asPl57g

1% revenue growth only by comparing numbers as just numbers and ignoring inflation. Profits are shrinking. Performance relative to peers is bad. Market share is shrinking. The only thing that actually grew was the debt–to–cash ratio ... at an alarming and unsustainable rate.

Just as Roadmap 2015 had to be stopped because it was not sustainable, the dividends should be cut or eliminated and the money invested in research and infrastructure for future growth. Not saying it will happen, or if it does, that it won't be too late to save the company.

I'll be surprised if Whitehurst sticks around. He can see the iceberg and can easily escape before he is tainted.

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Post ID: @xgn+1asPl57g

AK is just a placeholder for Jim W. Everyone knows that. AK has 3 yrs max to hand the ship of to Jim W.

While the numbers are manipulated, they really could have been worse. Yes, you can contribute some of that to cost–cutting measures (RA) this quarter.

AK may be a cookie–cutter of Ginni, but I don't believe AK is so focused on buy–backs like Ginni. Ginni drove this company into a grave, while getting rich. AK has a h––l of a job in trying to bring it back to life.

I'll take what nugget we can get....even if it's fool's gold.

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Post ID: @haa+1asPl57g

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