Thread regarding IBM layoffs

RAs starting today at Spain -- Olé!!

After offering a voluntary departure program targeting grey hair fellows and according to the Union with a reduction of aprox. 15% on the headcount AlwaysCo today started the RA raid on the remaining folks that don't went on "voluntary" . Looks like the bloodbath will continue on until mid-October.

by
| 4430 views | | 19 replies (last )
Post ID: @OP+1cRwyyMx

19 replies (most recent on top)

It is all about cutting costs at IBM since revenues are not growing or are marginally growing... this is the only way IBM can keep on paying the Execs beaucoup money and make the quarterly dividend... nothing else matter folks!! The BS about growing the company is just BS.

Get used to it, or find a job somewhere else.

by
|
Post ID: @7kwv+1cRwyyMx

Now you are starting to get it IBM/Kyndryl has to offshore the low margin services, commodity, and admin business (TPP) Neither company can afford to service these requests at current labor rates. Bain has offered to take that business and pay an origination fee for doing the front end marketing part in the Fortune 500 customer set. This satisfies IBM as they are transitioning to an IP strategy for this business anyway. It’s just a matter of dotting the i’s and crossing the t’s

by
|
Post ID: @5hqd+1cRwyyMx

The Pain in Spain, caused mainly by the Bain

by
|
Post ID: @5pfg+1cRwyyMx

They should really PIP those managers who think they're exempt from those 400 hours of learning and badges!

by
|
Post ID: @5bma+1cRwyyMx

humm i reckon IBM are in PIP (performance improvement plan) mode. Make it almost impossible to meet your KPI's (400 hrs of education and certification and badges).
Then put you on a PIP and get rid of you for nothing......

by
|
Post ID: @4vbq+1cRwyyMx

Eventually this RSU Trade Union site should probably be posting some information about these RAs in Spain -- http://rsuibmsegrate.altervista.org/index.htm

by
|
Post ID: @1jgo+1cRwyyMx

@1nmq+1cRwyyMx

"In what alternate universe will our revenues ever increase? "

We can all dream... at the end of the day, if revenues do not go up after all the restructuring then IBM is totally doomed, and will end up a Mainframe only company.

by
|
Post ID: @1vsm+1cRwyyMx

IBM currently has a major problem when it comes to their work force. They can’t afford it as it relates to NA, and Europe when you factor in legacy cost, investment, and research. Remember IBM’s burden rate per employee is extraordinary high vs it’s peers. As such IBM has allocated 3 billion in spend to slim down the 2021 workforce (3 billion = approx 35k if it’s all spent on head count) There is an additional 1 billion allocated for 1st 1/2 of 2022. Not all of that allocated money will be directly spent on head count reduction, but rather in moving headcount to lower burden rate employers. It’s important to note that IBM already stated that 1 billion of the 3 billion in 2021 spend will be spent on GTS efficiency. I expect IBM to exit 2021 with slightly under 200k of head count. 125k will have landed at Kyndryl and they will decide how to drive their needs. The really interesting part will be the 2022 spend. Most of that spend will be on partnerships so IBM can slim down via another 40k in heads. Expect IBM to partner off ultra low margin servicing, and non-strategic (think non-RedHat oriented) HW and SW. These partnerships will offload IBM’s books, but still exploit IBM’s long term past investment. Pay attention because this is where folks like Bain see opportunity. Exploit older technology that still has cash flow, and just needs ruthless management to prolong or reshape it.

by
|
Post ID: @1pou+1cRwyyMx
who knows .. will depend ... Revenues go up, may be we will see a break in layoffs

In what alternate universe will our revenues ever increase?

by
|
Post ID: @1nmq+1cRwyyMx

There may not be much media coverage but you can certainly listen to the earnings calls and read the financial documents IBM puts out... the amount of money set aside for restructuring (AKA mostly layoffs) is stated there in black and white.

by
|
Post ID: @ttu+1cRwyyMx

345K employees at the end of 2020 as per annual report
Kyndryl takes 90K, but it is rumored to be 125K so they can do their own layoffs
Assuming the 125K number, you are now at 220K after the Kyndryl spin off is complete

There is more money in the bank for layoffs... So, no doubt the company will end up with 200K or less employees when all is done.

After that who knows. It will depend on the results. Revenues go up, may be we will see a break in layoffs.

by
|
Post ID: @eet+1cRwyyMx

If the WW target is <200K employees, how many are there currently - after the Kyndryl offload?

I don't see much media coverage of these changes. It's like IBM has gone into stealth mode - either that or nobody cares much.

by
|
Post ID: @izf+1cRwyyMx

PR machinery works as never before and they have planned this ahead and momentum sized just at the same time big announcements where made public. Today's presidential visit was to back the Big Blew bet on a local cloud zone where a major bank just also announced would rely on for their cloud business.

by
|
Post ID: @irw+1cRwyyMx

Any link to news article(s) with this story?

by
|
Post ID: @dze+1cRwyyMx

And for the ones reading this from the US and thinking that is evil to give federal financial incentive to corporations that ship labor outside the US ...well just when the RA session started by videocall the spanish president went to our HQ premises to announce the COVID-19 European Relief Funds are coming and there is plenty of cash.

Some of us we cannot connect the dots with today's events.

by
|
Post ID: @btu+1cRwyyMx

Rumor has it 401k 49 1y 50 4y and non-401k 50+ 3y - Mostly non-401k B9+ rushed to get the prize. Head of Inhuman reso. among the first to file the paperwork.

by
|
Post ID: @xal+1cRwyyMx

Any info on what IBM was offering in Spain for a "Voluntary" layoff?

by
|
Post ID: @pjm+1cRwyyMx

No surprise there... IBM has set aside plenty of money for layoffs through the end of the first quarter 2022. IBM wants to get under 200K employees, so until that target is reached, layoffs will continue across the globe.

by
|
Post ID: @bvv+1cRwyyMx

Post a reply

: