Thread regarding IBM layoffs

Red Hat-IBM merger mysteries: Will Hatters really remain separate? Layoffs? Will execs stay?

SEPARATE OPERATIONS

“Theoretically, they can have very separate operations. However, most people think IBM overpaid for

Red Hat as a standalone business,” Verdonik said of the deal – the biggest ever in North Carolina –

was announced last October.

IBM had to go to the bond market to raise $20 billion to help cover the cost of the acquisition.

“That price ($190 in cash for each share) only makes sense if IBM sees a lot of synergies between the

two businesses,” Verdonik added. “It’s difficult to reap the benefits of synergies if the two businesses

really do operate separately.

“So, I don’t believe what I read about separate operations.

Switzerland will be assimilated!

https://www.wraltechwire.com/2019/06/27/red-hat-ibm-merger-mysteries-will-hatters-really-remain-separate-layoffs-will-execs-stay/

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Post ID: @OP+ZLnWjm3

15 replies (most recent on top)

I believe IBM absolutely knows that Redhat is all about the developers and their ease of leaving. As such, that’s why you are seeing IBM continue to cull the existing IBM’ers. IBM is making room for the Redhatters, and will coddle them for at least 2 years. We saw that with just about every IBM acquisition. There were multiple examples of SWG paying 1 million dollar commissions to acquired company sellers to keep the sellers happy while adjusting quotas for existing IBM’ers to fit into the pay plan. 2 years later the 1 million dollar commissions were gone even though the acquired folks had sold just as much. Once IBM on boards you and develops the relationships via either customer or knowledge, then you are disposable or cost adjustable Remember the bean counters that manage IBM only care about costs everything else is replaceable

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Post ID: @3qvl+ZLnWjm3

-2sqp Interesting question. The value of Red Hat, more than most companies, is in its people rather than its product. We know IBM has no respect or use for people so your idea would be exciting to see.

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Post ID: @3zrp+ZLnWjm3

Ginni the Eagle is the stupidest CEO living on this planet.

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Post ID: @2vaq+ZLnWjm3

Serious question. What stops a large contingent of RH employees (managers down through developers) from leaving IBM and starting a new company called Green Hat that simply takes the source code for Linux (Fedora/CentOS), OpenShift (OKD), CoreOS, and Ansible and immediately competes with what IBM is trying to do with RH?

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Post ID: @2sqp+ZLnWjm3

IBM to RH: "Resistance is futile. You will be assimilated."

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Post ID: @2qlq+ZLnWjm3

@ZLnWjm3-1xql We’re you at RH or IBM ?

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Post ID: @2gyh+ZLnWjm3

There is a fairly serious level of mass exodus from the company right now due to the horrible corporate culture and high levels of upper management incompetence. I just couldn't stand it anymore and had to leave for my own sanity.

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Post ID: @1xql+ZLnWjm3

I left when I heard of the acquisition.

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Post ID: @1zvi+ZLnWjm3

My prediction... Eventually the sales operations will merge, with the favored IBM execs taking over the lucrative Red Hat accounts. The Red Hat reps will be given ridiculous quotas and territories, with most of them leaving. Red Hat itself will be moved under IBM Cloud. In a year or two, marketing starts the rebranding - the Red Hat name will slowly disappear into oblivion. Seen this happen many times in my IBM career.

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Post ID: @1coc+ZLnWjm3

There won’t be any Red Hat captives. Core techies will leave in a blink of an eye if they don’t like it. Remember there are no proprietary products at RH, only the people that build , implement and support them. Even with IBMs track record , I highly doubt they will try to do anything that effect the fine balance at RH. However it will be interesting to see how many RH people will cash in and leave ,

https://www.wraltechwire.com/2019/06/26/red-hat-millionaires-watch-for-workers-to-cash-out-if-ibms-34b-acquisition-wins-approval/

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Post ID: @1izb+ZLnWjm3

When IBM acquired Cognos, the CEO got $31 million with the stipulation that he stick around 2 years. He stayed slightly less than 3 years. Other executives got immediate $$$ payouts when they were declared redundant. RAs started in year 3 and have continued ever since.

Acquired executives become fiscal objectors. Happy to be paid to sit in an office but eventually too rich to put up with IBM. Acquired employees become fiscal captives. Sick and tired of continuous layoff threats but too poor to quit IBM.

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Post ID: @1csz+ZLnWjm3

Over the next year (Europe approved the deal today so it’s only a matter of time before the deal closes) IBM’ers who are doing what redhatters are currently doing will be reduced (SWG, middleware, and cloud). After a year the redhatters will then get to see the true IBM (if you are over 40, you will most likely be replaced by a cheaper alternative). I hope I’m wrong, but every deal IBM has done in the past 20 years has gone like this. Welcome aboard redhatters your year count down clock will start as soon as the deal closes. (most likely in July). Just repeat after me. It’s all about costs. As long as you don’t grow old, and can work for pennies you should be good

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Post ID: @jzp+ZLnWjm3

Not once has IBM allowed separate operations of an acquired company. IBM finance and ops will k--l RH. They cannot help themselves.

Remember the old joke? What do you get when you integrate anything with IBM? IBM!

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Post ID: @uke+ZLnWjm3

Hatters screwed.

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Post ID: @vfo+ZLnWjm3

Hatters separate? History shows that will not be the case. Oh are they gonna hate IBM lol.

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Post ID: @ksn+ZLnWjm3

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