Do we expect any soon? If so, when and where? Kavanaugh said they intend to spend 400 mil on restructuring, same like last year. We all know what restructuring means. They are also doing some hiring, and expect to have roughly the same headcount by the end of the year. Question is who will be hit.
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IBM has previously announced they are only interested in the fortune 1100 worldwide I suspect that’s where they are aiming
The Fortune 1000 covers a lot of ground. Try the Fortune 100 or Fortune 250 instead.
Also, anyone who isn't buying x-x millions of dollars worth of stuff every year (including license renewals) will be sent to partners or vendors rather than dealing with IBM salespeople. Don't wanna deal with the riff-raff.
This is easy IBM will pick the low hanging fruit (the least profitable/strategic products). NOTE this list continues to adjust as IBM implements the Hybrid Cloud strategy. IBM’s strategic leadership (CFO and CEO) actually said on the last analyst call that “enterprise” customers are their focus. So if your customer set or product line isn’t used by say the fortune 1000 there is an order of magnitude increase in your chances of being impacted.
So let’s take a peek at last quarters numbers
TSS -9% Good chance you will be impacted (ask yourself why is this down Is it because system Z customers went away, or is it because distributed customers went away) QED distributed customers are the weak sister
Distributed customers +7% Good chance you will be impacted if you are not on the fortune 1000 list (see above)
Automation, data &AI, and automation (flat, 1%, and -6%) You can do the math NOTE if your customers are fortune 1000 you are far more safe than if they are not
Management (IBM says same head count at end of 2024) Doesn’t take a rocket scientist to figure out everyone of these guys costs who goes drops to the bottom line, and IBM is gunning for them in the USA (back to the office or leave) At least 1/2 of IBM’s savings in the USA will come from here.
So net it all up. IBM predicted on the analyst call 3 billion in savings in 2024. That most likely results in 1.5 billion (RA, PIP, employee quitting, retirements) and 1/2 coming from IBM exiting “commodity” businesses
IBM used to be the borg (you will be assimilated) Now IBM is Jack Welsh If you are not a segment leader you will be eliminated
Kavanaugh should lay himself off.
IBM has left more businesses than it has entered: Networking and communications, printing systems, display and input devices, personal computers, microelectronics (the chip fab), x86-based servers, strategic outsourcing. It's struggling with cloud computing and consulting has problems.
IBM is a real life version of "Back To The Future"...it's gone back 40 years to 1984: A mainframe and enterprise software company, with not much else going for it.
They could spend 400 million on building up new lines of business, but instead they are throwing 400 million dollars and who knows how many employees out onto the street.
Working for IBM used o be a career. There were many opportunities to move around from one technology to another one.
I personally worked in different area on different technologies.
Some people worked for IBM 40+ years and felt that they were learning and contributing until their last day before retiring.
Over the years, IBM portfolio shrunk with IBM exiting from different area and failing to start other initiatives. The failures are not limited to the cloud, virtualization, blockchain and soon AI.
So working at IBM is a day to day job. Being ready to jump ship at any moment.