I'm no longer with IBM, but 80% of my former group of 600 people will be notified, on Monday that they are being laid off. Sounds like Marketing is being decimated.
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Very little of anything in Systems or C&CS has to do with AI or Hybrid Cloud. What happens to them then?
GBS’s revenue has been stagnant to shrinking year in and year out for 10 years. Do I like 12% growth YOU BET I DO, BUT 1 quarter does not make a trend and GBS is playing in a very very competitive marketplace where you can get undercut for a nickel. Everything GBS does is hard
It’s labor intensive
It’s tough to automate
It’s almost a commodity (accenture, bain, mckennsy, etc etc)
It’s a unique skill set
GBS will shrink because IBM wants to only play in the AI/Hybrid Cloud model What does that do to the traditional GBS employees who have great practices but don’t play in AI/Hybrid? I think they get partnered off and IBM extracts money from them via the partnership
Same thing for systems and gbs. They can't even find a single replacement if someone resigns/retires and people are leaving in droves.
C&CS is losing people in droves... they have been trying to hire... hard to believe they can shed anymore people... but again, IBM really don't care since the goal is to make it to the next quarter. For sure, if C&CS lay off more people, I just don't see how it can show any growth.
Given GBS’s profit margins of 28% vs systems 50% and cognatives 80%, you could speculate that IBM is aiming to trim GBS harder vs the other two divisions.
GTFO with that. GBS grew 12% last quarter. Systems SHRANK 7.3% (10.2% at constant currency). C&CS was barely above flat after adjusting for currency. Since Revenue is king it won't be GBS that's getting cut.
nothing is odd anymore. throw out the old semi-rules about end of quarter, thursday, etc. it's all done on a non-stop rolling basis from now on. there are no safe weeks / months / quarters. btw if you're that afraid of layoffs in ibm you should simply move out/on. it will never stop.
If you are letting the channel take over 85% of direct marketing and sales, you don’t need as large of a field force. AK announced 85% would be given to the channel. Where IBM intends to spend their 3 billion in restructuring is anyone’s guess, BUT at the last earnings call the CFO did say 1 billion would be for GTS restructuring, while the other 2 billion would be for Hybrid IBM and it’s streamlining. No analysts pursued that line of questioning any further, so it’s just wait and see. Given GBS’s profit margins of 28% vs systems 50% and cognatives 80%, you could speculate that IBM is aiming to trim GBS harder vs the other two divisions.
I'm no longer at IBM either, but I predict someone will be laid off at some point this year. But, not on a Monday. Always a Thursday.
Do not spread rumors. How do you know this if you are not in IBM?
I would say in general that given the success of IBM products in the last few years, marketing did not have much of an impact anyway.
Is this coming monday that is 16th August? Region? Usa? BU? More info appreciated
Asking because it sounds odd, on monday + middle of quarter