After being at IBM for almost 2 decades for the first time I am hearing of executive RAs in Software after the Dinesh announced reorg. Both VPs and Directors are falling under the RA hatchet. There are still way more SVPs and VPs that should probably go.
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There was a round of executives cut about 3 years ago as well, but it was a bit quiet unless they were in your reporting chain.
AK and the exec management team learned long ago that there is only one kind of surprise allowed on Wall Street, and that’s a surprise to the up side. Given that IBM guides very conservatively, 4th q earnings should be a wash. Nothing growing like mad to move the needle, but nothing shrinking like mad to move the needle. IBM will make their numbers and possibly exceed by a penny or two. The real elephant in the room will be flat growth. Legacy within IBM continues to shrink at just about the same speed as innovation within IBM. NET NET = flat growth, and the only way IBM can move the needle is shrink costs. IBM has been doing this via offshoring of labor for the last 10 years, but if they are finally down to the SVP and VP level, we are at the end of the line for cost take out within the first world economies. What’s left for AK to do? Most likely watch for the sell off or partner off of the low end crown jewels (eg TSS, low end power, and cloud)
Wait until after the 2024 q4 earnings call on January 29th. When the numbers are not good, axe will fall soon after.
Waay too many women executives promoted in the name of DEI!
I don't see any substantial developments on the horizon for IBM, in either hardware, software or services. The labor is largely gone, so that leaves management to face the axe...
Dramatic cost cutting in higher cost countries has finally reached a point where the explosion in the number of executives over the past 10+ years can not be ignored. Ironically the only strategic sites allowed to hire in the US are the most expensive to hire and retain talent. The company is running out of cutting options this year and if revenue does not finally pick up ( no signs it will even with plenty of acquisitions) the future is grim with only top execs in US and hundreds of thousands of workers in India where turnover rate is outrageous. Buckle up!
Unfortunately no real right sizing. Some executives were RAed, but new ones are in place. Some left IBM few years ago, just to come back now through the big door. 80% of these new bosses are from India.
You're probably very close to what's really happening. IBM has been "rightsizing" and "strategically downsizing" for so long that there aren't many workers left. That leaves management...
Finally… I guess they can no longer RA the people at the bottom who are actually doing the work… there is almost nobody left and the ones left are exhausted buried in work and about to call it quit!
Yeah I heard the same thing this week, but no specifics at all.