Thread regarding IBM layoffs

@4lim, if you are in IBM Software, please work on improving IBM software products.

In my SW Engineering department management is constantly screaming at everyone to "find their own work and create their own career path" but there is nothing to do. The most fearful or driven (depending on how you see it) folks beg for work but even they're well under 50% utilization if what we hear from the higher ups is true. I know there are many people who have basically done absolutely nothing in the last 6 months due to no fault of their own, they just aren't being given work.

I left employers that worked me like a dog because it was too much stress, but having absolutely 0 work to do other than study is just as stressful in its own way because every week I have intrusive thoughts such as, "How is this sustainable, why is it happening, and how hard should I be interviewing with other companies?" I really don't know the answer to any of those questions.

When the CEO and CFO both confirm and quantify the headwinds that IBM is facing, you know it’s not a blip but rather a negative longer term trend. As such management is going to have to address it, and when you are a largely consulting and SW company (your major cost is personnel) and growth (high single digits) doesn’t offset the headwinds, something has to give on the cost side. IBM traditionally looks inward when these kind of changes take place abandoning where they don’t feel comfortable even if they are making money and embracing where they do feel comfortable (insurance, banking, telco, finance) It’s the tried and true old IBM playbook. We’ll shrink/save our way to prosperity. Expect IBM to get smaller! Consulting will take more cuts as their margins are skinnier, while SW will take fewer cuts as their margins are fatter. Infrastructure will come in between even though 50% of Infrastructure barely breaks even while the other 50% has very very good margins. If you see IBM trying to drop the 50% of infrastructure that barely breaks even, and other underperforming pieces of divisions, then you will know that IBM has finally embraced the new strategy that management claims they are implementing.

Heads are going to be falling soon... just listening to Tom Rosamilia 2Q results (IBM Software)... Revenues are up that the good news but contribution to profit keeps on falling down and it has been the past 3 quarters. So, what does that mean? Heads are going to roll, and as usual they will lay off the wrong people. They will layoffs the people that are actually billing clients. All the other useless people (management, PPT builders, etc..) will be saved.

Good luck.

@1anp+1hUvJJrX

Thanks AK... now I can start looking elsewhere. Still going to make it to 40% total utilization which will more than cover my burden rate, but fu-k I don't want to stay working at IBM for a deep sh-t like you!

They may be desperate for heads, but a 20% utilization rate doesn’t cover your burden rate. Given that we are at the front end of a recession, your utilization rate most likely will not improve. The economic headwinds are forcing a sense of urgency upon the management team due to an uncertain 18 month outlook. Dumping your burden rate actually makes the company look better over 18 months vs pocketing the 20% utilization income. Unless your management team can justify your “strategic” need, I suspect the financial engineering part of HR has moved you to the potential PIP list. Free Cash Flow is driving the sense of urgency and anything impacting FCF negatively is now in the bullseye. Those decisions are already being made as the economic head winds are increasing substantially (fed decision today) and the executive management team has to respond.

I left ibm 6 months ago and after couple weeks of leaving an ibm recruiter was trying to hire me back.

You guys who are left should ask for a retainer bonus of $100k cash or atleast 50k because they're gonna shove a lot of work to you as well.

@gcw - A colleague who recently left IBM used the rest of her Blue Points to get a Vaccuum Cleaner so she would always be reminded that "IBM sucks" 😏

I am not worried about RAs either. I am in US Expert Labs. My utilization is at about 20% so far for the year. My target is 65%... I won't make it, yet I am sure I will still have a job next year. They are f u c k i n g desperate to keep people around and not leave.

IBM sucks... Management is terrible and totally clueless... they (management) are only in this to fill their pockets with money that is not deserved because they have shown absolutely no results. The IBMer's at the bottom are tired and are taking their business elsewhere. It only makes sense to me. I did the same thing 6 months ago, left to go work at Google... best decision I have ever made.

The department I'm in at IBM averaged about 5 offboardings a week for the past several months. Mostly due to people leaving for other jobs at other companies. IBM never backfills any of the vacancy left by those people leaving. The people leaving are usually the ones that are doing the most work, are the most knowledgable, and young.
Let's reflect, IBM has gone out of its way to RA employees 50 and over, in order to fill those positions with younger employees, who in turn leave IBM after getting about 1 year of experience and free training under their belt. So, old got kicked out, and young are leaving on their own. Leaving IBM severely understaffed, with huge gaps in both knowledge and experience at IBM.