Anybody have any insight to when the RA and Layoffs will start at IBM in 2019, or how big it will be. Lots of rumors floating around out there but it seems the employee have zero data about what groups, how big, or what percent and when this is all going to go down.
There is growing confusion internally, and rumors of horrible 2 week severance packages are bubbling up it seems.
This year is not that bad at all
Layoff 2Q2019 has already started... employees are being called now.
I am ready bring it on
Asked if job cuts were planned as IBM struggles to ramp up business, Mr. Kavanaugh said the company would “take actions to address the stranded costs and structures” that would eat the majority of a projected $500 million to $700 million gain from planned divestitures.
IBM, Mr. Kavanaugh said, expects to close most—if not all—planned divestitures in the second quarter.
Any specific layoffs date and total headcount
Q1 result tomorrow might open layoffs front doors.
Began today 4/1/19.
The last two years saw an RA on March 29th. I was hit by the one in 2017. I'm anxiously awaiting this date and hoping that history doesn't repeat for the third year in a row. I have many friends that are still there.
@7ugd spot on. They can start with any non-client facing team. Distinguished Engineers who sit in their ivory tower. People who do “go to market” from home, creating demos of tools that don’t work. Layers of bureaucracy in the proposal release process. The GBS benches are HUGE. In the UK, average utilisation last year was 50%. Sadly folks, that means 50% of you have to go. Problem is, there is so much favouritism that the wrong people consistently get let go.
Nothing happens until AFTER Think next week.
The optics wouldn’t be good. And the press will be unavoidable on the event floor.
Think about it people.
Tech jobs are plenty. But the people who have to go are managers. executives, bureaucrats and bean counters. They stay with IBM because they have no where else to go.
There’re so many ‘BS’ jobs at IBM. They need to cut maybe 20,000. Everyone get your resume ready and find something else. At least the economy is good and jobs are plenty.
14,000 is relatively small looking at the amount of waste positions at IBM.
Can you say Agile champion
The CFO is treating each segment of the business separately and adjusting accordingly. See page 18 of his presentation to analysts
Cognitive (79% + profits) 67% of revenue is strategic. THUS it makes sense for the CFO to sell assets that don’t align with strategic.
GBS (27.6% profits) 70% of the revenue is strategic. THUS it makes sense for the CFO to lay off to streamline the business and bring profits to where they need to be.
TS and Cloud (42.3% profits. Excluding integration SW it’s 34.9%). 36% of revenue is strategic. Infrastructure services and TSS were flat and down 3% year over year growth wise. CFO has already said he will exit low growth areas (think spinoff or partnership). Ask yourself what parts of Infrastructure services and TSS align with strategic growth initiatives. Integration services is 80% + profitable
Systems (50.8% profit). 60% of revenue is strategic. CFO has already claimed Z and Power are catalysts to bring in services. OS’s are 80% + profit. THUS there is only one area for the CFO to trim. Storage looks to be on the block especially considering it’s SW parts are up in cognitive
IBM would need to RA 14,000 more people to raise the additional cash for Red Hat .
None, but I think the RA is going to be small this time. The focus is on unloading a full division to raise cash.