Thread regarding IBM layoffs

Is there Account Fraud at IBM?

Nobody here admires Rometty. Another quarter of failure. The question is---if a company is willing to lie about its layoffs; lie about the pace of its transformation---and if a company willfully violates one set of laws--like the age discrimination act---then why would anyone imagine that its accounting morality is any better? Former CFO Shroeter is no angel.

CFO Martin Shroeter reports almost $6 billion of legacy ‘transaction processing software’ in his ‘cognitive solutions’ s. That stuff is mainframe. Refer to the gross margin analysis numbers on page 35 of the 2017 IBM Annual Report. Observe that the Cognitive Solutions segment (which includes cogntive solution software and that base mainframe software) has the highest gross margin: 78.6%; well what if mainframe is dumped in there to juice up poor cognitive solution software performance? That's just what Bob Cringely - who called this out here...NOthing illegal I assume...

https://seekingalpha.com/article/3978821-ibm-1q16-financials-misleading

But what if Martin is stuffing mainframe software even within the Cogntive solution software bucket (which includes analytics)? Is db2 in that bucket? And why is some CICS stuff classified as 'cloud'?

I'm serious--if you are willing to lie with a straight face about firing thousands of workers, and incurring $1B per year on average during $20 Roadkill----then you are just about willing to do anything to get paid---and lie about anything.

If there is accounting fraud--that would be the way to topple Ginny Rometty AND the Exec Management team AND the complicit board. That's the angle here to pursue. I have no special insights on this subject but I'm sure some of you do!

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Post ID: @OP+VG3Iwqu

8 replies (most recent on top)

@VG3Iwqu-wrx aka free advise95

**Yes that means small Z, and DASD.

--Why spin out small Z? ON the z13, the small z is basically made of the same parts, which is why it was so expensive. And DASD is primarily Z storage, so doesn’t it belong in a vertically integrated mainframe platform – Z machine, other Z hardware (storage, network, etc), zOS, hypervisor, z proprietary software (db2, cics, ims, tpf, etc)?

***Spinoff IBM India (legacy).

--Why sell this off? You mean all of the applications outsourcing and infrastructure outsourcing? If yes, then that means selling off the rest of the delivery centers too, right? Including what’s left in U.S.

**Keep Strategic initiative services and cover up the fortune 250 with love

--Why keep this? I assume you mean GBS Consulting, e.g. former PwC consulting, e.g. What B. van Kralingen wants to call Watson services and blockchain services and industry platform services? Seriously? Please explain. I would spin off GBS Consulting on Day 1 and take GBS out of its misery, and make money. It’s total channel conflict to have a software / hardware company attached to a consultancy. I would also spin out Watson --- and make it available to ALL consultancies – that way Watson has MORE CHANNELS TO MARKET as opposed to f’d up IBM only.

**The rest of the stuff below makes sense – thanks for the free advice. Ready to show up at the next shareholder meeting and conduct a HOSTILE takeover of the Company!!!

-- fire the current CEO and board, hire a 50 year old experienced person in Ginni’s place, let the New CEO reorg the company and board with “strategic initiative thinkers”, slim down the reporting chain via layoffs to 7 layers (yes this mean getting rid of all of the bloat that has accumulated during the Ginni era), GROW the business via investment in Patents, IP, relationships, and good marketing. IBM used to be a marketing company. Get back to your knitting!!!!! Ginni and the current board needs to go. Take the cash that is generated via the spinoffs and sell offs, and buy someone who can grow the business. (A LINUX company seems correct. Perhaps Redhat???). NOTE they have a very good CEO who is the right age. How hard should that be to execute???

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Post ID: @1gnl+VG3Iwqu

Two things. I'm NOT so smart; I'm not boasting. I know people FAR superior to me who got cut. And they were definitely victims of age discrimination.

If I was smart, I would have left in 2013. Second, I did speak with lawyers. It is very difficult to prove age discrimination. Besides, I'm under 50. I was collateral damage in a 5 year program designed to churn over the existing North America workforce.

I was involved in TWO public petitions against the company AFTER I gotten my second RA notice. If I had fully appreciated that Executive Management is callous, cynical and character-flawed, I would have been FAR bolder while still employed in the Company. I regret that I was not savvy and courageous enough to do more while I was there.

That is why I want to figure out what's happening now--perhaps there is a way to use this information to effect constructive change that we all believe in.

Also, I worked with outstanding women--and I'm so glad IBM is more inclusive than some other technology firms. That said, While CEO Rometty deserves accolades for hiring and promoting women leaders, IBM has for more than a decade achieved equality for all employees over the age of 40, at which time both men and women are equally likely to receive layoff notices. Many women signed an Open Letter to CEO Rometty that I wrote.

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Post ID: @ppr+VG3Iwqu

Hey iwqu, if you are sooo smart, why didn't you take IBM to court about those PIPs....sounds like you had a case...if your boasting is true....and I agree IBM is shedding high performing employees w/ experience, drive and know-how.

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Post ID: @rtv+VG3Iwqu

Those creepy first-line managers trying to RA top performers is insane!

Can you say throat punch?

But let me guess, the girl with the cute little butt with zero skills stays on and gets a promotion huh?

She can send email reminders to the team to get their agile training done, that takes some skills.

Pathetic group of people at IBM today

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Post ID: @kjx+VG3Iwqu

YES the are!!! CAn folks help break down what's REALLY underneath each of the imperatives? They keep changing names of stuff that I lost track--because I made the mistake of focusing on my JOB!!!

When IBM tried to RA me TWICE, I fought it up to the level of North America General Manager--as a band 8, and a band 9. I told them they could FIRE me on the spot, but no way in hell would I leave with 1 month severance when my performance was nowhere near the bottom of my peer group. Hell, I exceeded quota in one job--and got RA'd; and I worked on a hot product launch in mainframe--and got RA'd.

When betraying first-line managers tried to criticize MY performance, I told them they had no leg to stand on, and if the tried to PIP me for 30 or 90 days, those would be the WORST days of their professional careers. IN the end, I had enough--I was physically and emotionally exhasted. I voluntarily separated--and I got more than 1 month for my troubles.

Please help me understand whats in the bogus strategic imperative segments.

Please.

There is one thing that unites a divided country--at least among us working folk. None of us--no descent American respects corporate malfeasance and shareholder-value destroying Executive Management and complicit Boards of Directors

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Post ID: @thx+VG3Iwqu

Iwqu. Here I’ll give them some free advice. It comes from the Gerstner era

Sell off legacy (except for fortune 250 Z and Power). Yes that means Power scale out, small Z, and DASD. Spinoff IBM India (legacy). Keep Strategic initiative services and cover up the fortune 250 with love, fire the current CEO and board, hire a 50 year old experienced person in Ginni’s place, let the New CEO reorg the company and board with “strategic initiative thinkers”, slim down the reporting chain via layoffs to 7 layers (yes this mean getting rid of all of the bloat that has accumulated during the Ginni era), GROW the business via investment in Patents, IP, relationships, and good marketing. IBM used to be a marketing company. Get back to your knitting!!!!! Ginni and the current board needs to go. Take the cash that is generated via the spinoffs and sell offs, and buy someone who can grow the business. (A LINUX company seems correct. Perhaps Redhat???). NOTE they have a very good CEO who is the right age. How hard should that be to execute???

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Post ID: @wrx+VG3Iwqu

They have being doing this for years. Ever since they started the strategic imperatives and created the business units. The old legacy s/w and h/w has to go somewhere. So they shuffle things around as they need to. It would be better if they broke the results out properly so share holders had some visibility.

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Post ID: @xbk+VG3Iwqu

They were classifying mainframe hw revenue as cloud if the machines ran a specified version of CICS.

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Post ID: @ifw+VG3Iwqu

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