What do you think?
14 replies (most recent on top)
Ginni hired McKinsey over three years ago, and they came back and said 80-85% of your revenue comes from your top 500 customers worldwide. Bain was hired a year later and they verified that number.
And then Covid19 happened ... so maybe all those results are no longer valid in this very-much-changed world.
IBM may be skating to where the puck was 2 years ago. As usual.
RBH gets the closest to the pin award. For those of you saying there are no layoffs coming, you just are not paying attention. IBM has allocated the money, and they have now put the management team in place. Remember the management team has to be on board with where and what the CEO’s vision is, and where he is heading. Please note IBM has made no secret as to where they are heading. Ginni hired McKinsey over three years ago, and they came back and said 80-85% of your revenue comes from your top 500 customers worldwide. Bain was hired a year later and they verified that number. AK has now taken that data, and is transforming IBM into a company who will execute that plan. Ask yourself why does IBM mention 4600 potential customers for Kyndryl, but doesn’t make any mention of the amount of customers “new Hybrid” IBM will service? It’s because the number of customers, and the needed headcount to service those customers are far less. I estimate the number for new IBM will be close to 900-1000 all in. Everything else will go to the partners, or the channel. NOTE the new strategy is product agnostic, but lends itself toward a mainframe strategy. Why? Because that’s where the money is. IBM is only interested in the revenue aspect of the potential customers, not in the product sets. So what’s the result of all of this? IBM shrinks a LOT. GTS gets the long term contracts and a good portion of the debt and dividend obligations. GBS adopts more of a partnership role with industry specialization across 8-12 industries. Cognitive continues to muddle along embracing AI, Redhat, and application modernization mostly focused around LINUX. It’s a brave new world, and the play has been called. IBM is executing what they know best (enterprise) and abandoning what they do poorly (intel/consumer).
ha ha Rob "Tabasco" Thomas.
When I think of all the smart people who’ve been laid off, and then I have to listen to that mo--n spew gas… Says it all.
Oh man Rob Thomas is awful. So badly wants to be Steve Jobs. Isn't even John Scully. Slogan does not equal Strategy. Would love to finally see him held accountable, but I'm sure he'll fail up instead.
We can expect re-orgs all over the place (all divisions) since there is a new SVP in each division! Not to mention that IBM has put so much money aside for layoffs already.
Which team was affected?
@slg Sorry to hear that Wishing you the best. What did you do at IBM and how long ?
Just got my RA notice today. Some on team affected/some not
I doubt layoffs are coming…
Reorg def coming. He has to show that he’s doing something different.
He's the worst EVER
Expect a re-org in the next 2 mos. Also, expect a MAJOR RA by Sept when they forecast 4th qtr numbers.
Is he shaking the org up?