Thread regarding IBM layoffs

It appears to be a 24% direct cut of headcount (11k in Nov, and 10k in March) in addition to the elimination of 5,000 job postings for this year. The really interesting part is management will be shrunk by almost 50% 1/2 getting a buyout, and 1/2 going back to the field. It seems ZUC is willing to make the hard restructuring decisions that IBM isn’t willing to make.

Here it comes

https://www.cnbc.com/2023/03/14/meta-layoffs-10000-more-workers-to-be-cut-in-restructuring.html

Go Go Meta...

Here it comes Meta is leading the attack on management overhead

https://www.sfgate.com/tech/article/meta-allegedly-plans-second-layoff-round-17825230.php

Company is filled with useless middlemen managers. IBM will never succeed because of it. Its officially a dead company.

When IBM restructured in 1993 under Gerstner he flattened management from 13 levels to 7 levels. That resulted in 45% of the managers disappearing. Direct reports span of control doubled, and admin assistant positions halved. In Gerstner’s book, he said it was one of the best decisions he made at IBM, as it resulted in a large increase in IBM’s productivity with the savings dropping directly to the bottom line. Translation = the 15k head count reduction helped IBM report a net earnings of 3 billion dollars in 1994 of which the 15k contributed over a billion. In addition to that result, 1994 revenue went up 2 billion vs 1993’s results even with 75 thousand less employees worldwide. Hopefully AK is paying attention and realizes it’s time for IBM to double down on the IBM management diet plan.

History repeats !
In late 1992 IBM had a lot of managers suddenly become team leads in other areas or operators on the lines. Almost all were like fish out of water but they kept their salaries. A couple of years after the 1993 blood bath these clowns almost all seemed to get into management.
META will be no different.

Thumbs up!