https://www.businessinsider.com/read-memo-dell-staff-restructuring-layoffs-jobs-ai-2024-8
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Almost every business that has announced earnings in the 2nd q has said “we have limited visibility into the future, and AI has changed the landscape” Translation = we over hired during low interest rates and now we will have to address that over hiring. I fully expect IBM US to approach their ultimate goal of 35-40k. On a side note, Kyndryl demonstrated to IBM that downsizing services to an 8-10% on shore model was viable. Each division within IBM is now pursuing a viable model that minimizes costs
Consulting = 8-10% onshore, with everything else going off shore
Infrastructure = 60-70% onshore due to plants, labs, and TSS This will go down as IBM exits manufacturing
SW = 30-35% onshore due to IBM acquisitions and absorbing innovation vs internal development. IBM is in the process of greatly reducing SW headcount as acquisition has become the norm and internal development has been abandoned.
Overall Dell has shown IBM the way 17% of worldwide headcount. Everyone will share in the pain NA = 10-12k, Europe = 8-10k, India = 25-30k, and everyone else approx 3-5k