"suspend or slow hiring for about 26,000 non-customer-facing back-office roles—which amounted to roughly 10 percent of the company’s total workforce"
https://www.crn.com/news/channel-news/2024/ibm-starts-new-round-of-layoffs
5 replies (most recent on top)
Four things:
#1 No one cared when this was blue collar jobs. Now the offshoring is effecting white collar folks. Perhaps they will be more empathetic in the future to the next guy.
#2 IBM has survived using accounting gimmicks for years. Be honest, much of what IBM offers isn't all that and a bag of chips compared to it's competitors.
#3 Expect more layoffs in 2025 and 2026, and these will NOT be related to the AI cr-p. It's coming.
#4 "But we deal with government and operations that have to be done in US." Well, they will just keep open a small number of people to handle those accounts, and ship the rest of the jobs overseas. Many other companies in oil and gas, tech, and multinational already do this for those kinds of accounts.
To keep the hot air balloon afloat, they will throw the fuel source and burner overboard, if it buys them another 10 minutes of life. Logic doesn't enter into it.
This is the CFO’s comments about Palo Alto Yep their revenue will go toward restructuring IBM had previously (1st q) said they were going to allocate 400 million. Now add in the 500 million from Palo Alto and you are at 900 million.
Our focus on execution and the strength in the fundamentals of our business resulted in strong performance in the quarter across revenue, margin expansion, and growth in profitability and earnings. Looking to the full-year 2024, we are holding our view on revenue. We see full-year constant-currency revenue growth in line with our mid-single-digit model, still prudently at the low end. For free cash flow, given the strength in our performance in the first half, we feel confident in raising our expectations to greater than $12 billion, driven primarily by growth in adjusted EBITDA.
This also includes a modest contribution resulting from the Palo Alto QRadar transaction, largely offset by related structural actions to address stranded costs. We continue to expect the QRadar transaction to close by the end of the third quarter.
The real question is what does the USA head count look like by end of 2024? The answer will be found in the 5500 form filed by IBM mid next year. I predict the number will be in the 38-42k range. This is where IBM sees itself as being right sized for the USA
160 x .08 = 13k in consulting/CIO/O and F
40 x .2 = 8k in SW (note a good portion of these are IBM purchases of innovation)
10k in IBM plants and labs (fix asset)
8k in TSS, Hybrid cloud, lab services
This assumes IBM doesn’t partner off all things SMB (power, storage, non-hybrid cloud, channel, TSS)
IBM CEO is highly regarded by the board and the investors because he saves them a lot money and keeps IBM out of bankruptcy
Please stop using global/worldworld figures. It is irrelevant.
What matters for Americans is the percentage left in the US. This layoff appears to be around 15%. This is huge and is a mark of desperation by an incompetent IBM CEO and his Yes folk.