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Terrible move by IBM. Jim W was a ray of hope for all the IBM’ers as he provided an outside-in mindset and came from RedHat which has a terrific employee culture and not run by bean counters like at IBM. How I wish it was Jim Kavanaugh, CFO departing than Jim Whitehurst.
If you had noticed, even the strategy head Roger Premo will now move under Jim K - never a good thing when strategy is overseen by bean counters. IBM is increasingly irrelevant in the technology marketplace - it does not have a ki---r product and services are increasingly commoditised and moved away from an engineering culture in 90’s to a sales & finance dominated company and then now increasingly a finance dominated culture focused on financial engineering including short term actions to boost EPS. Employee morale is very low with its consistent layoff culture except in Finance department which has thousands of employees churning out spreadsheets.
It was pretty evident this week when IBM move to insource it’s email servers from HCL Tech backfired and employees didn’t have email for a week during a quarter close. I bet this will show up in the Q2 financial results and IBM is probably the only large tech company which didn’t grow in Covid as digital transformation has been pulled forward by a decade and IBM clearly didn’t capture any of it.
If you can’t get e-mail portability from external cloud to on-Prem for your own company, how do you expect Banks & financial institutions to trust their cloud & app modernisation transformation to IBM for their mission critical stuff?.
He’s not leaving _right now_ he is still going to get his two-year money
Correct. Otherwise, he'd be walking away from 19 million not 17.
Looking forward to the earnings call in couple weeks… Q2 numbers are not great as far as I have heard, add the JW news, stock will most likely tank further.
He’s not leaving _right now_ he is still going to get his two-year money.
I’m surprised they didn’t put him on a pip first.
Wow. JW was RA'd
By leaving now, Jim walked away from $15M in stock and $2M in cash.
He wanted to leave so badly that $17M was not enough to keep him around. What does that say about the state of IBM and its future?
ps Interestingly, IBM's stock price today is pretty much exactly where it was when the Red Hat deal closed on July 9, 2019. Maybe they could have invested that $34B somewhere better?
We all know where it is going… the complete and total destruction of IBM…
Buried in the press release.....Roger Premo, head of IBM strategy via BCG, will now report to Jim Kavanaugh, who is the chief bean counter.....this is not a good move, strategy will be toast soon
Paul Cormier must be pi----g his pants… hope his resume is up to date! Lol!!
I assume the plan was to announce this along with Q2 financials, but once the news leaked, they had to go ahead and confirm it?
Foster leads GBS (and is actually quite good, and more admired).
Granger is the bulldog that cadences everyone in GBS (and is actually less good, and more feared).
Who is “Foster or Grainger”?
Jim is set for life. He had his day. Why bother working after his accomplishments and just life the rest of your life.
Why won’t Foster or Grainger ever leave... every org change announcement I have hope they’re finally out but I’m always disappointed.
Jim is leaving to run his charity. Seems like a case of burnout/late life career change. There’s far more to life than working at IBM after all. The more interesting change is Rosamilia moving out from Systems and into C&CS. Fairly obvious that the IP licensing deal is on the horizon for Systems.
Can confirm. That's what he told me.
Jim is the big winner and mastermind here. He was able to position Red Hat into a bidding war, and then find an ignorant su---r desperate enough and big enough to way overpay. He (correctly) calculated that IBM would not completely disintegrate within his two year vesting period, and then just kept his head low for those two years. At literally the earliest opportunity for full vesting, he is gone, and has the opportunity to be safely out of IBM stock before it completely tanks - it will be interesting to see if he sells all of his shares as soon as he can (July 12th?) before the earnings call.
The only thing for sure now with all these changes of leadership is that heads are going to start rolling big time across all divisions. Get ready!
Can confirm. JW taking the money and run. Why would he stay?
JW has been lining up his next job for the past year… just look at his stuff on LinkedIn…
Good riddance… looks like AK is in solid position to be CEO for the next 5+ years… that will give him time to totally destroy the company.
IBMers time to leave this sinking ship!
Trying to read the tea leaves at IBM is like trying to predict the weather. Rosamillia escaping Systems before 2nd q earnings kinda says Systems is going to make some sort of move My guess is some or all of it is going to a partnership arrangement. Rosamillia taking Whitehurst’s job is even more interesting. Why put a true blue Exec back in charge of Cognitive? Whitehurst is either exiting at the 2 year mark, due to a big part of Cognitive being a poor fit for Redhat and he is tired of the blue washing, or he is lining up his next job (can anyone say Google)?
Red Hat deal closed 2 years ago next Friday. I guess all of those overpaid $hares have now vested and there is otherwise zero reason to remain. Everyone else here at IBM should follow this excellent example - do not stay more than 2 years.
The BluePages link to Ric Lewis (from HP) who will lead Systems, says he is in HR. Is that a hint or mistake or holding place?
What about the person in charge of email?
"Tom Rosamilia will become Senior Vice President, Cloud and Cognitive Software. Tom has extensive experience within IBM. Most recently, his strong track record of success includes leading our systems business and achieving solid business results."
Really? Solid business results from Systems? Power had tanked and storage numbers have been awful quarter after quarter!
"Ric Lewis as our new Senior Vice President of Systems".
So Systems is staying around despite consistent bad results? I can only hope the Systems group is heavily downsized and made more competitive with better, profitable product sets
"There's really no good justification for the stock rising up to $14x since the barely-treading-water Q1 results."
I concur, it's over-valued. But this is clear reaction of Jim's anncounment. It would drop like this no matter what price it was at from the news today.
There's really no good justification for the stock rising up to $14x since the barely-treading-water Q1 results.
After the email outage, and now this bad news, followed in 3 weeks by the Q2 results, the stock may hit a 52 week low.
I think Arvind Krishna should leave IBM. What he doing??? Did he want to shutdown IBM???
What a massive public vote against IBM
The news outlets are having a field day with Jim leaving.
I wonder if Ginni also had something to do with this?
The blue-washed IBM machine just continues to eat them up and sp-t them out. No professional from an advanced technology company should ever consider going to IBM.
Damn we're really fucht now. I bet we'll see a mass exodus of RedHat employees.
Public announcement is here from this morning;
This is evidence that the bet-the-farm strategy is not working.
Red Hat employees know that the Bluewashing is about to begin and may begin leaving in droves.
Is Whitehurst leaving before his options mature? I wonder if he saw the Q2 numbers and saw the end of everything is nigh.
There is no way possible for IBM to spin this as a good thing.
IBM has apparently confirmed
True.....stocks are tanking for some reason.
No public news posted as of yet. Could be a fake post.
Wow ibm, the writing is really on the wall. Are they poising for a buyout.