Thread regarding IBM layoffs

When I was there about 10 years ago - ex-PWC Partners, MPs had taken over GBS and had very little skills around actually running projects, delivery. They were very good at politics and positioning themselves as well as protecting themselves. AND Ginni gave them all control of the org - so they protected their old pals. Is that still the case re: band D, C Partners, etc.? Wouldn't surprise me if they are running the org into the ground. Any of the good ones left as soon as their options matured, those who knew they could not survive outside in the wild clung on for dear life.

Ah about time, I was Band 10 (for 6 months) then I got my RA. Never during my 12 years at IBM did C&D ever have to meet the same goals as the numbered bands. Give 'em he-l now IBM-A. Knowing how to use SLACK should not justify the insane pay those id--ts get.

the Band 10 bloodletting is BAU. has been that way for decades. Band C and D? good to hear real dead weight is finally being jettisoned.

i've seen many IBM C's and some D's leaving the past few years.

2dgp I can’t disagree with your observations, BUT remember IBM always looks inward and marches to their own tune. Here is how they view your the market.

1. Mainframe is a monopoly and we will price right to the edge of demand destruction. To date IBM has been very successful at doing this. They have not seen any demand destruction in their core market

2. IBM’s “hybrid cloud” strategy is built around Enterprise. You never see IBM advertise or compete directly against Google/Microsoft/Amazon. Why? Because IBM has already conceded the scale out market place to the hyperscalers and as such they have redefined IBM’s cloud offering as “Hybrid cloud” and focused their efforts instead on their exclusive monopoly (enterprise). So what is IBM’s strategy in the scale out marketplace? Embrace the ISV migration, and charge them for the Redhat SW and service offerings instead. Will it hurt? Not really because the margins on Redhat SW and services make up for the loss in HW margins. The net of this strategy is IBM gets to exit the Commodity HW offerings, make the same amount of total profit, and be able to reduce headcount considerably thus reducing overall costs. It’s not pretty, but it’s where IBM is heading

"Headwinds = rising interest rates, currency exchange rates, higher employee costs, fading Kyndryl one time purchase" ...

or perhaps:

Headwinds = rising interest rates, currency exchange rates, higher employee costs, fading Kyndryl one time purchase, lack of innovation, Mainframe pricing not aligned with market, the competitors eating IBMs lunch with their cloud offerings ...

Z will definitely save the day in the next 4+ quarters... so, the IBM results should be OK going forward. Still you need to expect more layoffs. Looking at LinkedIn, I have seen a lot of IBMers changing jobs... is it because of layoffs or being tired of IBM, who knows!

The street thinks IBM is heading for a pretty good quarter. (6% growth)

https://realmoney.thestreet.com/investing/can-big-blue-aka-ibm-breakout-to-the-upside--16048014

Headwinds = rising interest rates, currency exchange rates, higher employee costs, fading Kyndryl one time purchase

Tailwinds = strong consulting demand (you have to love long term contracts), double digit Redhat growth, new Z platform (As goes Z, so goes IBM)

Seems like Arvind is attempting the old "pump and dump". Get the share price artificially high and then cash out. This company is clearly on life support.

@1egm You are 100% correct. Those with Alliance" or "Partner" in their title don't contribute to anything but self preservation. They sell nothing and waste everyone's time with internal calls that bring no value. In fact I'm certain their loyalties lie outside of IBM. HR should pull the trigger on these clowns There would be zero negative impact on our business

This confirms what was posted last week
Consulting will use PIP’s to drive toward Consulting goals
SW will use RA’s to exit overlapping businesses
Infrastructure will use partnerships to exit low margin and non-strategic businesses

The question is what is IBM’s ultimate goal? The CEO has given us some hints. Preserve the dividend, invest in new mostly SW and AI opportunities, and preserve the enterprise. That’s not a lot to work with, but you can use free cash and back into a number 10.5 free cash flow - 6 billion dividend - 2 billion in new investments - 2 billion in interest carrying costs. That’s it You are out of money

Anyone with "Alliance" or "Partner" in their title is a total empty suit and should be RIFed immediately. They literally do NOTHING

If IBMC was being run well by these partners I would feel bad for them, but I’ll say it’s about time. Top talent is leaving because of the partners that think they’re god but don’t even know the industry or how to deliver. It seems the only thing they know how to do is submit low bids with low profits and complain front line staff cost too much to get their bids even lower. The partner board That placed all these partners should the first to go

Nice job Arvind!

Now do managers next pls.

I know of a Security DIr. Candace M. and a couple of her managers need to go. Useless.

Can confirm. Consulting. Band 10/D/C. They're not being given "impossible to achieve targets" they're being told they're expected to meet the signings/revenue targets everyone at their level is held to. Many of them haven't sold anything in years. Good riddance!

Band C & D? Looks like finally they are trimming the useless management... these people that do nothing, produce nothing and cost too much to the company.

Unfortunately, band 10s (which we typically need) are always also in the cross hair.
I have always said, if you are a band 9, it is a mistake to get to band 10 as there is a 100% chance you will get laid off.

Sounds more like Tech layoffs than consulting

Which area of Consulting?

Sounds about right.