Thread regarding IBM layoffs

PIP for Low Utilization - IBM Consulting

I'm a band 8 practitioner in IBM Consulting and recently got PIP'd for low utilization. My manager agrees with me that this wasn't my fault as I was let go from my previous project with less than a week's notice and wasn't given enough heads up to search for my next project, especially with a shortage of signed work. I am given 30 days to find myself another project. In any case, I did plan on leaving the company in the near future so was thinking what my options are right now. Here is what I am finding after some research and wanted to see if anyone can provide more input:

  1. Job hunting with the intention of failing the PIP - This seems like most possible outcome since there are a shortage of projects so wondering what the implications are if I fail the PIP. Most obvious answer is that I will get terminated but will I get severance? Will I be eligible for unemployment benefits (located in California)? Will this negatively reflect on my employment history when job hunting?
  1. Resigning - I am seeing recommendations against this as this makes me ineligible for severance or unemployment benefits. This loops back to point 1. Suppose that failing the PIP results in no severance or unemployment benefits, what's the harm in straight up resigning prior to PIP expiration date?
  1. Severance Package? - Articles suggest that I should look into negotiating a severance package. Does this even seem viable?

I know I'm leaving out some other considerations here so please chime in if I'm missing anything.

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| 4001 views | | 11 replies (last January 17, 2024) | Reply
Post ID: @OP+1qoph77D

11 replies (most recent on top)

IBM "Severance" isn't "Severance". So in US they'll give it to all. It's basically a contract that you will STFU and consider yourself settled with IBM and not sue.

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Post ID: @elrb+1qoph77D

For your question 1. Will this negatively reflect on my employment history when job hunting?
I don't believe so. You may get asked a question from a Company HR or Talent Acquisition person when you are interviewing or on a job app about why you left your previous job. What you have explained above about being let go at the end of a project through no fault of your own seems like a good and honest explanation.

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Post ID: @cbru+1qoph77D

Not allowed legally in the Netherlands.IBM themselves must be put on PIP.

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Post ID: @2tgn+1qoph77D

1wnr All consulting firms need a bench to absorb work that comes in the door. The issue that plagues all consulting firms is how big do you want the bench to be. 80% utilization is considered optimal across all consultants. (this varies depending on job, and band) Higher level consultants usually have lower utilization targets as they are suppose to spend more time developing lower level consultants. Given that IBM has 160k in consulting, that says .20 x 160 = 32k of folks on average are on the bench on any given day. So yes there is a lot of demand for “open” work positions. The culling of consulting positions usually takes place in Feb due to customer projects getting funding and solidified in Jan. With IBM prioritizing certain “hybrid cloud” / SW modernization industries, you can easily see who the winner and losers are going to be in consulting as they move into 2024. I expect mainframe modernization projects to carry larger benches with lower utilization targets, and Power and storage projects to carry smaller benches with larger utilization targets.

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Post ID: @1bgc+1qoph77D

Don't leave before you ride that PIP to the bitter end ... get the last paycheck and move on. You will get no severance.

Your job now is finding a new job and doing absolutely nothing for your manager or IBM.

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Post ID: @1lxs+1qoph77D

Why would IBM keep anyone if there isn't any work available? IBM Consulting is the worst place to be in IBM. Look somewhere else, though the way things are going for IBM there isn't really a place that is safe.

IBM manages costs very closely and effectively. Unless you can show what you are actually working (billing/selling), you are most likely on your way out... the exception is management and some other useless people who always seem to get a free card!

No point to work at IBM.

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Post ID: @1wnr+1qoph77D

If you look in the IBM slack channel #fed_staffing -- people are basically begging for work in there. Most of them weren't successful in finding any work, because if you click on their name it shows that they are deactivated.

To answer questions:

Q: Why do you have to find your own assignment?

A: That's how it works at IBM.

Q: Shouldn't the company place you where needed or do what it can to make you billable?

A: Probably, but that's not how it works at IBM.

Q: How do you go about getting yourself on a new project?

A: Use the professional marketplace or beg for work in the slack channel for that purpose. There are "resource staffing professionals" who are supposed to help, but honestly, they won't do any better of a job at finding work for you than you'd do on your own.

Q: Who is making sure the choice of which person gets on a new team is fair, objective and best for the project/company?

A: From what I've seen, 10-20 people put themselves in play for a seat, and most of those never hear anything before they are marked "not selected". There's a huge surplus of people looking for work at IBM. It's a buyers market. I suspect they go for the cheapest applicant that still meets the requirements.

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Post ID: @1cpa+1qoph77D

Just an outside observer here, former RA, former Band 8 GTS...I worked a lot with the consultants, but not part of GBS or anything like that. I did, however, observe them and spoke to them quite a bit as coworkers. PIPs weren't a thing in my day, but being on the bench was. From what I'm told it su-ked. All those who were benchwarmers told me that their time at IBM was short, so they were already looking for outside work.

To put it another way...don't look for that PIP thing to end on positive terms. IBM already wants you out, and it seems they can't offer you any decent work anyways, so take any head start you can and find something better to do with your life. Unemployment benefits are nice if you can get them, but they too are a short term item. The best thing you can do for yourself is to get another gig elsewhere...one that pays. IBM ain't working out, so don't waste any more of your time.

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Post ID: @1uxi+1qoph77D

Questions from an outsider:

Why do you have to find your own assignment? Shouldn't the company place you where needed or do what it can to make you billable? How do you go about getting yourself on a new project? Who is making sure the choice of which person gets on a new team is fair, objective and best for the project/company?

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Post ID: @1rez+1qoph77D

Hi there, first sorry you are in this position. I would not suggest you resign because then you would be ineligible for severance since you voluntarily quit. And since you voluntarily quit, it could impact your unemployment benefits. To help you understand what Unemployment benefits you are eligible for, here's the link to the State of California Employment Development Department ==> https://edd.ca.gov/en/unemployment/qualify/ I wish you well. Alot of people are in your situation and employers are understanding about the lack of consulting gigs at the moment.

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Post ID: @1vac+1qoph77D

Start looking now. If you are on a PIP due to utilization the only way you get off the PIP is if you get another assignment.

PIPs are 30 - 90 days in duration. They will say you don't have the skills the market is demanding. You will fail the PIP because you didn't develop the skills the market needs which prevented you from getting another assignment.

If in the US you will be offered a reduced package with similar benefits to an RA. For example instead of 90 days severance you will get 30.

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Post ID: @nob+1qoph77D

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