Including execs
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Don't know about band 10, D or C Execs involved. RA'ed last week final day July 14. HCS, B9, Business Sales & Delivery Executive.
I report great positive status and my manager ignores me and I report some negative status and my manager ignores me. Am I being ghosted in advance of a layoff?
IBM generated 19.1 billion last year with 190k+ of employees. That’s 100k per employee which is a very ugly number given that IBM’s burden rate is 140k. The industry average for consulting revenue per employee is 170k. Take 19.1 billion and divide by 170k and you end up at 110k worth of employees (JUST to be average) So what to do???
- raise revenue (numerator)
- Cut employees (denominator)
- Do a little of both
If IBM raised consulting revenue by 5% you would be at 20 billion
20,000,000,000 / 170,000 = 117k worth of employees
It sure appears like IBM has to swing the ax just to get to average
This is just IBM shaping consulting to the new go forward strategy (hybrid cloud, mainframe, and SW modernization). IBM consulting continues to move upscale, and to abandon lower margin engagements. NOTE there is a second headwind that is influencing this and its Infrastructures HW product cycle. Mainframe sales are off mostly influenced by product age (mainframe is at the mature part of its current product cycle). As goes mainframe so goes storage thus a second headwind. Power is dying mostly due to shrink to intel products. Power just isn’t viewed as the value proposition that it used to be. Most of Powers large ISV’s still support power, but don’t lead with it anymore. When you add up all of these head winds, HW is coming up 600-800 million short vs last year. That shortage has to be made up somewhere, and HW has already made substantial cuts, thus Consulting and SW are being asked to step up in the savings department. I expect Consulting will absorb Infrastructure and streamline their product offerings to optimize an affordable price structure. The low end of HW is definitely in the cost savings bullseye.
One can only hope. The numbers would have to be horrific to have a layoff this close to the end of the quarter and I don’t believe they are.
I'm skeptical
Nope the execs are a protected class.
Not even close to true
Details please. Where? What dept(s) ?
Execs? Thanks god, finally...