Thread regarding Kyndryl layoffs

Congratulations, on the new position. I am unfortunately stuck here at Kyndryl. I am in my mid-fifties so I will ride it out until they eliminate my position. I started my career at IBM. Then I was cost shifted (shafted) to Kyndryl. I am to old and to afraid to leave on my own.

I got another job offer, and have accepted it. I am so stressed working for Kyndryl. Everything has become a pressure cooker. Moral is non-existent, I enjoyed working with my co-workers. I wish the very best for all my fellow workers, Thank you for all that was done on my behalf.

All any potential investor has to do is read the "risk factors" section of Kyndryl's 2023 annual report, starting on page 15. Every possible red flag one could think of is listed, from "inability to attract new customers" and "we may not meet our productivity and growth objectives" to such doozies as "the spin-off (from IBM) may not achieve some or all of the anticipated benefits".

The bottom line for investors? Kyndryl is a speculative stock ONLY, and not yet ready for long-term investment with serious money.

The answer is simple, Kyndryl is carrying a huge debt load. IBM spun this company off to rid itself of debt and employee costs. Investors don't like uncertainty in their investments. They tolerate risk to a certain degree. That is the nature of the game. The uncertainty is Kyndryl did not acquire this debt load through years of trying to expand and grow Kyndryl . Instead it was created specifically to shoulder IBM's bad debt. Until this debt load is payed off or seriously minimize coupled with a sufficient number of employee reductions. This company will never reach its full dollar value.

Our stock (Kyndryl) is slipping again. I was really hoping, the stock would keep trending up in value. I am really surprised, investor's aren't scooping up this stock. At the end of the day Kyndryl is still a tech company and solidly in the top 500. There is zero chance you could pick up other tech companies stock for this price. My thinking is maybe the investor
's know something John Q Public doesn't. Seriously what's holding back our stock.

For what it's worth, Kyndryl is not unionized either to my knowledge (just like IBM). They employ people at will, so unless there is a contractual issue they can hire and fire anybody they wish, for any reason (within the bounds of state and federal law).

Thank you for the clarification, and open discussion. Your pointe of view was well presented. Have a good day.

I'm the poster of @vjau, so I'll answer your challenge. Is there corruption? Sure. Incompetent management? Definitely. Nepotism? Without a doubt. But to blame every hiring and firing decision on those factors is totally unrealistic, just like your accusation that I'm misrepresenting facts or that I'm somehow "schilling" (sic) for the company. Stock prices are always an issue, but so is contract performance. If a contract isn't performing, then people are going to be canned...end of story.

By the way, there is no such thing as "unfairly brought back" when it comes to employment with this company. Contrary to popular belief, resource actions are NOT layoffs. They are involuntary terminations, with no right of return. IBM is a private company, and no employee that I'm aware of is part of a union contract. (God knows how many times it's been attempted.) IBM can bring back whoever they want, for any reason. As it happens, most people who get RA'd will not be hired back under any circumstances. Don't expect to return to the company, "corrupt" or otherwise. RAs are just a fancy word for getting canned.

This is in response to the IBM/GTS model explanation. It's nice you lay it out in a clear logical argument ,for why the layoffs happen. Can you also explain the favoritism, certain employee's are given. When there is a layoff (Raleigh) person's that received their walking papers. Are recalled in a couple weeks, because they made phone calls or leveraged a personal relationship with a manager. So this whole company line of what team or contract are profitable or a contract is ending or beginning at the customers whim. Is not accurate in fact it is misrepresentation by someone who is schilling for the company. Until nepotism is ended in Raleigh. Those who were unfairly brought back by there connections means the office is corrupt. One more thing yes stock does matter. This is a publicly traded company, who pays it;s board in stock options. If that stock tanks so does their compensation.

If Kyndryl continues to follow the IBM GTS model (there's no reason to believe otherwise), then layoff decisions will be directly determined by revenue (who brings in money and who doesn't). The language about "financials", "stock prices" and all that can be very misleading to those not immediately involved in management, but revenue is very easy to understand. If you're on a revenue-positive contract that is still underway (a few years left) or has been recently renewed, then you'll probably keep your job. Sometimes there is an excess of employees that requires correction via RAs, but typically if a contract is making money and the customer is happy then there's a reluctance to get rid of staff.

If, on the other hand, you're on a revenue-losing contract, then the project executive has to cut cost (heads) before they lose theirs. You know what that means.

If a contract doesn't get renewed by the customer, or is renegotiated, or is outright cancelled (it's been known to happen), then it's a safe bet that most people on that contract immediately goes on the RA list.

Sooner than later, there will be resource actions in the united states.

There's already been at least 1200, probably more this year alone, so now is later.

I am sorry for your layoffs, good luck and good fortune.

Sooner than later, there will be resource actions in the united states. It all depends how the next quarter report . If the financials are good crisis averted. If the financials are bad layoffs will commence.

hi EU country employee @qnyi+1oC3pt2e. What ist your scope ?

I got layoff from one of eu countries, no work for my scope

I see our stock is tanking, If this continues, it will initiate cost cutting. We all know what cost cutting means for us workers.

Enough already, nobody really knows what Kyndryl will do in regards to it's workforce numbers. For now all that's being expressed is opinion and rumor very little if any facts. So please stop pontificating,. If you're that worried, by all means feel free to leave the company on your own volition. I am tired of reading the collective misery, of a bunch of chicken little's.

I agree, Kyndryl can not support 90,000 strong workforce. This company has some tough decisions coming up. Who to keep who to let go. What departments to trim. IBM set us to fail from day one. I log in every day. Hoping I won't receive notice that my position is being eliminated. I can read the tea leaves. Kyndryl has no choice it needs to cut costs.

What's happening now with Kyndryl was entirely predictable and probably inevitable...the GTS business model was failing, so IBM unloaded the division. Some investors thought they could make it work, and we now see the results.

Most Kyndryl employees are not going to like hearing this, but the fact of the matter is that the strategic outsourcing (managed infrastructure) business is shedding staff as quickly as the rest of the world economy, which means a he-l of a lot. Yeah yeah, some of this is Kyndryl's doing (along with IBM before it), but there's only so much you can blame on Kyndryl or its management. When client firms are firing their own employees and cutting expenses just to keep their own businesses afloat, you can bet that they are going to go after their suppliers. People are going to be cut...there are no options. "Lean and mean", "do more with less", whatever cliche you want to use...it all comes into play here because neither Kyndryl nor their clients have the spare cash to throw around anymore. Thanks to advances in technology, data centers that used to run with thousands of administrators now run with only a handful...check out how Google, Facebook and Apple run their operations. They work with skeleton crews.

Are you still a Kyndryl employee? Then look for other work WHILE YOU STILL CAN. How can Kyndryl possibly support a 90000 plus workforce? They can't, they aren't, and they won't...end of story. The layoffs you see now will only increase as current contracts expire, and are either renewed, restructured or outright terminated. I imagine even Kyndryl will get some new business, but I doubt it will support 90k employees.

I hated working for this company.

Kyndryl has to destroy the remaining IBM mindset to be a profitable company.

Took a "Business Development Partner" job at Kyndryl and didn't last long. There was no sales pipeline. There were no new customers. Existing customers want out of their contracts. Just a gross place to be.

This company will collapse under it's own bureaucracy. Just a matter of time before it implodes.

Kyndryl's business model currently, is flawed. I also agree the labor obligation this company carries is a problem. They need to cut unnecessary labor costs. Then take that revenue and channel it back into innovation and an indispensable service or product. I feel they are unwilling to reduce the size of the overall company. If they cut their labor costs through employee reduction. The company would not be seen as such a player on wall street. It would ultimately viewed as a desperate company in decline. Is it not better to be viewed as a shrinking company in business. Than a behemoth that explodes.

My worry is how can Kyndryl possible sustain a 90,000 plus workforce. Regardless of how they tout the companies financial turn around. The numbers that are being presented, are just manipulated percentages. The real numbers are definite trouble for this company. The reality is Kyndryl is carrying a huge debt load. Any profits that are squeaked out are quickly eaten up by payroll and benefits, and operating costs. Despite the size Kyndryl is just another mediocre company. Kyndryl does nothing innovative or original to stand out as a class A company. All we ever hear about is one bland partnership after another good example's of Kyndryl riding coattails of more successful companies.

Truth really hurts, so let's make it really hurt. Hey Kyndryl top brass. Here is your truth. You are employing way to many non productive IBM carry overs. These employee's should have been RA'd a long time ago. They add no real value to the company. You need to start dedicating company resources by recruiting younger more educated talent. It will be a MIRACLE if this company can survive a nasty economic down turn. I think the bloat in this company is obscene. Your managers are keeping mediocre employees' on payroll only because they have a cozy personal relationship with them. This is the very reason why laid off (white male middle age men) were given waiver's and their layoff was rescinded. Management do something about this abuse of Authority.

Hey @waa (see something say something) We all see you are a racist

Unionization this is what we should be focused on. Take a look at the UAW auto workers. They are demanding over forty percent pay and benefits raise. Yes I know we are not auto workers. That is obvious, but we are workers nonetheless. Do the Kyndryl top brass not collect a huge amount of money in stock,bonus',salary, and countless other perks. The last offer on the table for the UAW was a solid twenty percent salary increase. We will never see that kind of an increase in this company, unless we seriously consider unionizing.

I am really surprised that this company is still around. Out of 8 hours of work you are in the meetings for 10 hours, of course all useless meetings. 80% people just sit around and actual work gets done by 20% people.

If there is layoffs. The person's it will impact the most are the minorities and the middle age white guys. Then with in a couple of weeks they will recall the middle age white men to resume their jobs. These white men got caught up in the RA only because, Kyndryl dare not just layoff the minorities. Yes there will definately be some middle age white guys laid off for good. From the company stand pointe, great less dead weight. If you work out of the Raleigh office, this is exactly what happened in the last RA. Look around in your department, how many middle age white men were brought back no harm no fowl not a dime of pay or benefits affected. This practice should not be tolerated.

Layoffs are coming!!!!!