It looks like Microsoft is laying off today in their MCS consulting group. There is talk that Oracle will have big cuts on the consulting side. Do you think we'll be going in the same direction?
7 replies (most recent on top)
3qib I would generally agree with your observations, BUT IBM is restructuring the consulting segment to emphasize industries they view as their sweet spot. Internally 10-12 industries are viewed as the golden child with IBM trying to deemphasize or down size 6-8 consulting segments. Overall the consulting segment within IBM is booming as IBM’s purchased strategy (Redhat) is gaining traction at approx 1 billion additional revenue per year. NOTE this strategy has to offset the legacy strategy of HW/SW sales which is shrinking at 4-7% per year. It’s essentially a race pitting one vs the other.
Redhat grows faster than the shrink rate = drinks all around and claiming success
Redhat grows slower than the shrink rate = failure and a stumbling to a new strategy
Redhat growth = legacy shrink rate = RA’s, selloffs, and PIPs to fund growth
regardless, history shows consulting layoffs are a bellwether for a tumbling business environment
Barron's is complete rubbish
@ylv - Management at all of these companies seems to have the same BS artist Corporate Comms clowns writing these announcements. 😏
Microsoft Trims Workforce as Part of ‘Strategic Realignment’
By Eric J. Savitz
July 12, 2022 - 1:29 pm ET
Microsoft (MSFT –4.02%) is the latest technology company to cut jobs.
The company didn’t specify the number of layoffs, but said they affected less than 1% of the overall workforce.
“We notified a small number of employees that their roles have been eliminated,” Microsoft (ticker: MSFT) said in a statement Tuesday. “This was a result of a strategic realignment, and, like all companies, we evaluate our business on a regular basis. We continue to invest in certain areas and [expect to] grow headcount in the year ahead.”
The company said the cuts weren’t related to the current economic climate, and affected multiple geographies and teams. As of June 30, Microsoft had 181,000 employees.
The combination of higher interest rates, rising inflation, and an economic slowdown has triggered job cuts and reduced hiring at many technology companies, including Netflix (NFLX), which recently disclosed several rounds of layoffs, and Meta Platforms (META), which has slowed hiring plans.
Write to Eric J. Savitz at eric.savitz@barrons.com
Microsoft makes it official Approx 1800 folks
https://www.barrons.com/articles/microsoft-layoffs-workforce-realignment-51657646841
IBM is already implementing PIP’s. The shot across the bow is get your profit margins up or face the music. Approx 1000 have been informed, which is only a tiny percentage (1000/140,000), BUT it is definitely sending a message.
It's easier, and cheaper, for IBM Consulting just to do PIPs.