IBM’s spinoff, Kyndryl, seems to be in a wee bit of trouble.
I was going to attach a link, but honestly, just Google it — there are plenty of articles out there.
It’s a company led by former IBM executives, operating with the same policies, technology stack, infrastructure, and culture.
Something is rotten. Will it infect the mothership?
@6yc. Would not surprise me if IBM and Kyndryl don’t partner for all of the scale out products and offerings. There is more margin there vs Intel offerings due to product uniqueness Kyndryl’s current costs make it uncompetitive vs the Indian services companies. As such they need to carve out a unique/specialty offering. IBM scale out may be just unique enough to build a practice around.
Market cap is only 3B, that's couch change for many players who could buy it for pennies on the dollar, keep the few profitable managed services contracts and blow up the rest
Kyndryl red is looking more and more like orange and it couldn't happen to a better group of human garbage. Everyone one of them in that company above the level of director are unconscionable pieces of excr-ment. They resent being scuttled by IBM and take it out on subordinates. They call it "The Kindrill Way". It's an absolutely terrible environment there.
Any company that regularly emphasizes non-GAAP earnings, which are supposed to be only for one-time extraordinary events not every dang quarter, should have its financial statements questioned.
Any investor who does not look only at the GAAP numbers is playing with fire.
Investors should avoid any company with a hugely disproportionate amount of goodwill.
Investors should avoid any company with a hugely disproportionate amount of debt, or a negative net debt vs assets.
Pretty sure IBM checks most (all?) of the above negative indicators, as does Kyndryl, which has a ridiculous name as well.
Run away!
@qy But wasn't it done by purpose knowing he might buy this time until it crashes?
@Mw. It has taken 5 years for Kyndryl to go off the rails. Spinoff announced in 2020 and effective in 2021. Yes Kyndryl learned at the feet of IBM, BUT remember Schroeter was the IBM CFO when the accounting tricks were born. (GTS accounting was always questionable due to exceedingly low margins) Putting him in charge of Kyndryl when it was spun off was essentially putting the fox in charge of the hen house.
@kq They spent 10–20 years under IBM, learned every trick in the book, absorbed the culture, the systems, the playbook. And now we’re supposed to believe that in a single year they tossed all that aside and suddenly went rogue? Please. If it walks like a duck and quacks like a duck…
@kq come on we all know they play fast and loose with results. I just don’t think people are looking hard enough or just assumes someone else is
Kyndryl looks to be a case of aggressive “enron” accounting. I guess that’s what happens when you put an ex CFO in charge. There are a couple of interesting observations here.
@en yup I wonder where they learned this from?
Kyndryl just executing the financial shenanigans they learned at IBM. SEC, if you're listening, investigate!
They really should take a good hard look at Big blue given these recent revelations. But we all they won’t. And the behavior behind the scenes will continue. There is no accountability at IBM. Just another reorg
Next, it is IBM turn. The Indian clown at the top will come out from his hiding mumble about AI and quantum computing. He will not address his lack of ethical behavior.
Related threads (so far. . .) from the Kyndryl board:
@OP+1kh5meza0
@OP+1kh4mzkbr
@OP+1kh4f2st8
@OP+1kh3f8f76
@OP+1kh2baysw
@OP+1kh1adh95
Who are the low performers now?
The SEC may need look at who taught the financial engineers over there . And how the teachers at XYZ have their books look so good , when their products are outdated and of poor quality. Hmmm
@am James Krabanaugh is a man of extremely dark and doubtful ethics who cooks the IBM books. His sole achievement is to "encourage" IBMers to work on upskilling in areas which have little or no future.
@bm you'll be RAd soon you tool.
They should be focusing their efforts and attention on investigating the numerous shenanigans that occur here in Albany.
For those who are new here...Kyndryl is the former IBM Global Technology Services (GTS) business, also known as strategic outsourcing. Old timers would recognize it as division 07, the part of the business that managed customer data centers.
GTS was spun off for a bunch of "structural" reasons, the most basic being that the transition to cloud computing invalidated a lot of IBM's product and service offerings. IBM spun off the business into a separate company, and spun off lots of now-former IBM employees along with it. But just as the business was having troubles under the IBM brand, it is suffering the same troubles with the Kyndryl brand. As many here predicted early on, a lot of customers bailed as soon as their multi-year service contracts came up for renewal. In a world of cloud computing and software+hardware as a service, who wants to make multi-year capital investments in IT infrastructure and have IBM or Kyndryl run them?
Set aside the admittedly colorful discussions about incompetent and corrupt management. Yeah, it's all true, but the real problem with Kyndryl is that the business was doomed to failure from the start.
I am learning new skills
I’ll be a band 7 soon
Good luck getting promoted with your badges and learning...
You obviously don't understand a bit how IBM works!
But glad we have people like you... you will get laid off, I am not.
The Watsons are in heaven totally disgusted it was Gerstner who first violently jettisoned the IBM Basic Beliefs Watson Sr created and learned at NCR over many decades. It was the G Man who brought in and taught IBM Financial Engineering from his time at McKinsey where everyone is told they are the smartest people in the universe. SMH. Layoff 100,000+ over 18 mos. Ki-l the pension promised at recruitment/hiring. Question the value of 100% Club, 25 year anniversaries, retirement dinners, country club in major sites, stopped annual Christmas parties for the families etc etc. SMH.
What nonsense ? IBM is strong fiscally under Jim’s stewardship of the books
@Am. You need to concentrate on making IBM some revenue and stop focusing on internal measurements (eg badges) that generate zip. Remember if your department isn’t carrying its weight (generating revenue), your manager will have to lighten the load
@am: Why are you wasting time spewing nonsense ?
Or, is it some kind of dark humor ?
Grateful that IBM Has a CFO in Jim Kavanaugh. A man of integrity and ethics. Someone who looks out for our career growth. Last year I got here as a Band 6 and Hopefully I can be a band 7 this year. I took his advice and learned more skills and I have 15 badges. Last year I did 80 hours of Think 40
So far I have 18 hours and will be focusing on earning at least 10 more badges this year.
Kyndryl Stock Falls 55 Percent Following SEC Document Request, CFO And General Counsel Exits https://www.crn.com/news/channel-news/2026/kyndryl-stock-falls-55-percent-following-sec-document-request-cfo-and-general-counsel-exits
@a1 yup bet they thought they can keep doing what they have been doing and no one would notice
Cooking the books is a practice learned from IBM.