Thread regarding IBM layoffs

What can IBM afford to dump revenue wise

The real question is what can IBM afford to dump revenue wise. IBM has become hyper sensitive to any drop in revenue and has managed it’s restructuring around it. If you downsize GTS by 1/3 can IBM absorb the drop of 8 billion. The same will be said for storage (another 1-1.5 billion). Redhat will bring approx 3 billion, and selling of low margin GTS may bring another 3 billion in OTC revenue. (storage maybe 500 million). So will IBM be willing to shrink to 70-72 billion if it was able to pocket 3-3.5 billion in OTC. I suspect if it raises the margins of the divisions via reducing headcount and overhead, they will cut that deal.

Good point by @YBPkgsd-2jgw.

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Post ID: @OP+YEuSqOv

4 replies (most recent on top)

All of it... this company as a whole is DEAD.

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Post ID: @3jjz+YEuSqOv

Ginny Rometty ...

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Post ID: @3tmy+YEuSqOv

It seems the street is demanding changes and the IBM management team is in the cross hairs. They are speculating the Redhat CEO takes over and dumps all legacy including IGF

https://seekingalpha.com/article/4255478-ibm-embrace-weakness

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Post ID: @izc+YEuSqOv

Redhat won’t save IBM . We have seen this strategy over and over again. By the time Redhat comes aboard, Amazon and Google will be way ahead. Watch for service layoffs

and OEM, these are outdated and plenty of fat to let go in high level staff and management.

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Post ID: @jry+YEuSqOv

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