Looks like most mid-managers and employees list is getting prepared! AI impact has already started
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Layoff are definitely being planned. Arvind provided the insight with quarterly earnings. Free cash flow was above expectations, however it is not where it needs to be to accomplish year end goals. More jobs will be cut in countries IBM considers high cost and job will be added in low cost countries including India. India it will mainly be in Kochi vs Bangalore.
It is an IBM sponsored puff piece. IBM has paid Timothy Prickett Morgan for over a decade to write fluff for IBM.
This shows where IBM is heading HW legacy revenue is getting replace via SW and services. NOTE the doubling of revenue over very short time frames
https://www.nextplatform.com/2024/07/26/ibm-lays-its-genai-foundation-with-software-and-services/
It’s not just power, but everything outside the “enterprise” sphere. That includes non-enterprise storage, services (especially TSS), cloud, and yes power. The low end of the marketplace has MUCH lower margins, and higher manpower requirements. Both don’t feed the current enterprise strategy. AK just cut the deal and spin the low end off. The manpower savings will be approx 20% which will drop 5-6 billion to the bottom line
@2won, I agree with your last statement, the writing is on the wall for Power.
1mot You are correct there is no boogie man. Job 1 at IBM for the last 5-7 years was to get major costs under control (eg labor) via cost take out. IBM accomplished that goal by offshoring approx 1/2 of the USA and Northern European workforce to India. This policy saved approx 60-65 percent on every dollar/euro spent. Yes it will go lower in 2024 and 2025. Ultimate goal is in the 35-40k headcount for the USA and 30-35k for Northern Europe. USA 2014 headcount = 102,242 USA 2023 headcount = 51,708. That goal now being mostly accomplished will pivot to embrace Hybrid cloud/enterprise. That means your “surplus” is now Job 1 and will focus on cost take out. Expect IBM to partner off almost everything outside of the enterprise! That would represent perhaps 25% of the current IBM. IBM has been and always will be a B2B business which means enterprise engagements. Everything else (eg surplus) is just B2C and that doesn’t fit into IBM’s current strategy of expanding margins, and fortune 1500 focus. The ultimate goal is to find the right partner so IBM doesn’t sacrifice revenue. I predict a Global Foundries deal is in the works.
I dunno if the OP was writing in jest, but I wouldn't blame any of the firings (don't call them layoffs) on AI. If you're looking for a boogie man, there is none to be had. IBM's mass firings are the inevitable product of a company that to a large degree is now bereft of meaning or purpose. It has its mainframe and associated software and service lines of business, and that's it. Everything and everyone else is, to use the old lingo from my time, "surplus".
AI is just an excuse.
IBM will be firing resources in India too since they aren't making any money by moving jobs from the US. IBM India employees are lazy and they have too many holidays; the managers are in excess to the company's requirements.
It's time for the Terminator mission to start - Hasta La Vista, Baby.
"After all, AK said "no more dinosaurs at IBM" and that should also include him also - he is the classic example of an unproductive, out-of-touch dinosaur."
su-king up useful resources that could be better spent elsewhere
"AI impact has already started"
what AI impact
it's the we can't create anymore so we are going to fire a bunch of people in the US and rehire for those positions in india and save(make) a lot of money impact
this is how they get a bump in their profit margins
this of course will turn the company into a hollowed out burger king
Good start ! The layoffs should be planned also for North Castle, Armonk, Raleigh, Bangalore, Chennai, Mumbai and site which are manager "top-heavy" and with too many higher bands who are not client facing and not generating sufficient sales and revenue to keep the sites paying for themselves. F&O and Consulting managers and partners should have targets on their backs. If any organization has 6 or more levels of management in the Bluepages from the bottom to the top of the ladder, it's time for a Supreme haircut and a push to retire any managers who have been at Indian Bowel Movement for more than 20 years.
After all, AK said "no more dinosaurs at IBM" and that should also include him also - he is the classic example of an unproductive, out-of-touch dinosaur.