Thread regarding IBM layoffs

This is a little dated, but it does show where IBM is heading when it comes to storage. Feed the Redhat machine via using SW. Given IBM’s announcement of fabricating Enterprise Power and Z on the same production line, I expect IBM to emphasize the high end, at the expense of the low end. They are two completely different markets and the question is will IBM’s go to partner Lenovo want to fill that low end part as they move up the enterprise ladder

https://siliconangle.com/2021/10/28/ibm-spectrum-storage-announcement-raises-the-curtain-on-companys-broader-long-term-strategy-ibmstorage/

Retirement age is 67-72 for min dist so most will work until they drop.

1gvx Be carful what you wish for! Who would have thought IBM would have dumped chips in 2013 (Oct) then dumped Intel servers in 2014 (Jan) after having invested billions over the years to gain performance advantage, yet suffered continued market share erosion. 2022 is shaping up to be a 2013 replay, and IBM has far fewer things to sell off in 2022. Rumor within IBM is if you don’t feed the current strategy (Hybrid cloud, Ai, sw modernization (Redhat Linux), enterprise consulting) you will not be included in future plans. The next shoe has to drop soon as the Kyndryl One time boost to earnings is fading, and it’s going to surprise folks.

Five years ago, my group had what I'll call an encouraged retirement at around 60. We just had a retirement in the 60+ range that I'm unsure about. Three 50+ still working, out of 11. I'm one of them. I'm in decent shape if I get pushed, but three more years would be optimal.

63 and still going, been here for the past 42 years. only place i worked. 2 more years to go. i don't know why i'm on this site, seems i'm immune to layoffs. lolz

How about late 60s? We are still around. And why not, it is still an interesting job.

In systems, was in GBS. GBS can suck it.

RA’s are mostly for businesses IBM chooses to exit. Take each division and ask yourself what business will IBM exit in each. Consulting runs on utilization (billable hours) So unless IBM chooses to exit a non-strategic industry or cull the overhead it’s not coming here. SW runs on licenses and IBM has two flavors here (Legacy cloud, middleware, and Redhat offerings). Since IBM spent a boatload of money on Redhat, I could see IBM exiting the legacy cloud business favoring Redhat offerings instead. So our survey says RA’s are most likely to occur in SW as IBM will exit some businesses. Infrastructure runs on server sales, cloud services, and their servicing (TSS) Do you foresee IBM exiting any of the major platforms that they offer? Certainly not Z, large storage or large power. Note that also includes the cloud services and servicing of those products. IBM on the other hand would love to exit the small power and storage platforms as they are unprofitable and overhead intensive. This includes their cloud offerings and servicing. Why are they unprofitable? Mostly because Intel and low end storage alternatives are “good enough” and because legacy ISV’s have decided to write one code stack on intel supported LINUX. Factor in intel hyperscalers will do all of your infrastructure support for a fraction of the cost of power (pay for only what you use), and Power, AIX, OS/400, and IBM storage personnel are becoming quite difficult to find and hire, and it’s a no brainer that IBM will try and exit this part of the business and shift their profit model to just selling intel Redhat SW and services instead, thus favoring migration of the low end. So are RA’s possible? Yep, but they will be selective.

About 1/2

Survey for next round of RA's?

In the IBM office located in Atlanta Georgia they RA all people over 50 and at the same time they hire college interns.

I’m 50, been here 20+ years, most of my team are 50+ and someone on my team just retired at 72.

I know someone pushing 60 and they have been at IBM for 30+ years as a rank and file engineer. They say their longevity is due to the fact that IBM can no longer recruit or retain any new college hires. The ones they do manage to recruit all leave after a year or two. This situation has worked in their favor because last year they got a big hefty double-digit raise.

There are still plenty (a lot) of 50-60+ years old employees at IBM. Many are managers, but plenty of non-managers also. Most of the people I work with in US Expert Labs are over 50+. I have yet to see young people (out of college up to 30s) coming to that team. It is a dying team anyway so if you are young stay away, not the best place to work at IBM. You would probably have better chances in IBM Consulting.

3

Since IBM used to be a 40/20/40 distribution (under 30, 30-50, and over 50) and they are claiming zero age discrimination. You could speculate that IBM NA has approx 15-25% left in the upper bracket depending on how selective the previous RA’s were. That would make 11 to 19 thousand left in NA. So let’s say 15k
The real question is how many still qualify for the defined pension It’s over funded in NA and the bean counters have to have that in their sights

Only executives no rank and file

Have they managed to get rid of the majority yet?

Signed: Former employee who they cut five days before I turned 58.