https://www.theregister.com/2025/02/20/ibm_colocation_program_described_as/
11 replies (most recent on top)
Financially it makes to do outsourcing, if you could replace one employee in N.A with 5 or more employees in low cost areas, considering huge cost of overhead, benefits etc…it’s not just the high cost of salary in N.A.
@hw I’m confused What do you think has been happening in NA and Northern Europe for the last 10 years? Both areas are down 80% of their 10 year ago headcount, while India employment has gone from 30k to 150k over the last 10 years. There is a reason they have targeted RTO workers this time around. They are the only guys left standing after all of the previous rightsizing purges. There is a second reason for making it an RTO. IBM knows 85% of the employees impacted will not move, but rather take the buyout. We have reached the “who’s left standing” part of the restructuring which involves multiple organizations with different skill sets, ages, locations, etc etc. So how do you find a common layoff strategy for all of the organizations? Bean counters settled on the RTO strategy as it fit the bill nicely, and you already know within a 100 or so heads what the outcome is going to be. Remember the goal is to make NA and Northern Europe skeleton crews as low cost labor (cost take out) is job 1. That is the lesson learned from spinning off of GTS to Kyndryl.
If I were CEO making $86 million in stock compensation like AK, to save my job and please the board and shareholders, I would outsource as many North American high paying jobs as possible to India, Mexico,… and other low cost areas, not matter if they are older employees or not
if you give them stock, they will start treating the company just like a stock, and actively hurt it from a shareholders' perspective
Alviinds Perks were actually more than 30 million
He got awarded over 86 million in stock
Some of the Pipmunks like Krabanaugh got 36 million in stocks
I witnessed first hand "IBM cloud era". When, IBM decision makers realized the missed opportunities, in the rush to catch up, the most incompetent technical leaders were put in charge of creating IBM cloud response. The organization became an Indian tribe. Money was lavishly spent, brown-nosing is so prevalent, huge salary raises and promotions were gifted, silly acquisitions, no return on investment.
This been IBM''s game plan since Sam Palmisano. They've miss the ship with cloud saying it would never take off and paying billions buying companies to try and catch up. Anywhere they can reduce except the executives taking smaller bonuses as if a million isn't enough. I've Been Misled
AKA Age discrimination
AK is an expensive dinosaur. IBM is doing fine without him.
AK wants all expensive dinosaurs gone so that he can keep his $30 million a year job
Like it does with every other company.