Thread regarding IBM layoffs

2023 61.8/282 = 219k No temps or part time

...

1996 (reorg completed) 76/240 = 316k

Except a 1996 dollar is worth $2.01 today, so 316k in 1996 is 635k today

We are 1/3 as efficient as we were almost 30 years ago.

3dti So IBM loses 1/2 of its offshoring savings to labor inefficiency as revenue per employee drops. The numbers don’t lie, BUT offshoring is still cheaper due to the 2/3’s labor savings. NET NET IBM will settle for a push at 235k headcount. At 235k and 64 billion in revenue, IBM gets to an overall efficiency of
64 billion in revenue / 235k headcount = 272k per employee

IBM will settle for that efficiency number and be happy as the legacy (above age 50 headcount) has been greatly reduced. REMEMBER it’s all about costs and the CFO gets paid to lower costs to rock bottom.

3umw The revenue per employee is interesting
2020 73.6/346 = 213k THIS doesnt include temps or part time employees
2021 57.3/281 = 204k Again no terms or part time
2022 60.5/288 = 210k No temps or part time
2023 61.8/282 = 219k No temps or part time

1994 (Gerstner reorg started) 64/220 = 291k
1996 (reorg completed) 76/240 = 316k

So the question is why has IBM gotten less efficient by approx 33% in the 2020-2023 timeframe
ALSO note if IBM drove to the 1996 efficiency they would have to get to an approx headcount of
64/x = 315 X = 203k

Companies chewing up their own fats (e.g. trading their own shares or selling assets, offloading/detaching losing things to cook the books) is ki-ling the goose. AK wants a dead goose. Creative accounting may make happy shareholders, but also makes dead companies and staff with no 401(k).

Some numbers to consider

Adjusting for inflation, IBM revenue is shrinking by a few percent per year.

https://www.reuters.com/technology/ibm-take-27-bln-charge-related-transfer-pension-obligations-2024-09-11/

Some numbers to consider

2020: $73.6B in revenue and 345.9K employees
2021: $57.3B in revenue and 281.2K employees (90K of employees went to Kyndryl)
2022: $60.5B in revenue and 288.3K employees
2023: $61.8B in revenue and 282.2K employees

Sources:
2020 Annual Report pages 16 and 29
2021 Annual Report pages 8 and 15
2022 Annual Report pages 8 and 15
2023 Annual Report pages 8 and 17

Nonsense. A lot of executives and shareholders have made money over the years by buying and selling parts of IBM, and they continue to do so. Employees who have accepted what is going on have benefited from the situation by getting out before they got canned.

IBM is what it is. The continuing job cuts have been going on for almost 4 decades. There isn't an employee alive in the company who doesn't know the score. The company values cash more than its own people or its own business. Calling people juvenile names won't change that fact, and it will not save a single job.

As the saying goes...don't hate the man, but hate the game.

Kavanaugh is a CFO. That means that he's a money man. He manages cash flow and financial strategy...end of story. He doesn't manage vision and strategy (that's AK and the senior vice presidents of each division), nor does he manage day-to-day operations. What he does do is watch the corporate checkbook, the bank balances, relationships with investors and banks, and oversee all financial reporting.

Kavanaugh does not dismiss employees, nor does he tell the divisions how to operate. All he does is tell the SVPs how much money they have to work with, given the directives and strategies from the board of directors and AK himself. The SVPs decide who to hire and who to fire, not Kavanaugh.

He’s great at spewing tired out buzzwords and being Alvinds Chief Bootlicker

Kavanaugh is pushing Watson X but it’s a piece of garbage. It’s not user friendly and doesn’t answer questions correctly.

Also with him demanding everyone learn new skills there’s no incentives or additional compensation. I’m all for career development but the amount of new things to learn and middle management also driving this is self defeating

Kavanaugh has no skills whatsoever, but he's great when it comes to laying off hardworking US employees and licking Alvind's boots.

You have to wonder if Alvind is going to nominate him for an award from the India PM, Modi as well. The award would be a swift kick up Kavanaugh's backside of course for not hiring more Indians @IBM.