And will be as unpredictable in terms of who, when, where?
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When AK saved billions by moving high paying jobs to India, Philipines, México etc, $20 millions bonus is like a drop in the ocean
And what do you say about AK's fate when he get a bonus of 20 million dollars for 2023 ? Can't his job be done elsewhere ?
USA corporations like IBM contribute to Indian jobs growth in a very significant manner.
AK said: “ Every employee making over $100K should to be asking themselves this question: can my job be done somewhere else? That will determine their fate.. “
Actually, accounting for inflation I (@2xmi) made more than 5x that 17LPA offer.
@1eyv Often significantly less. There's a thread on reddit where a new grad in Bangalore said he was offered 17 lakh per annum (USD20364) and he said that that's "a dream salary for fresh graduates." I made more than 4x that fresh out of undergrad at IBM.
Another said fresh grads from his school were being offered 7-10LPA (US 8386-11979) and that devs making 20-30LPA ($23959-35938) were being PIP-laid off.
The first guy said IBM showed up to his college, held their own job fair, and eventually hired 99 people from that round. Then they went back the following month and hosted another hiring event
@uwg the Indians knows that IBM pays about 1/3 of US based employees salaries, the Indian employee works less than 1/3 the US employee effort, so effectively, IBM hires mores than 3 Indians for every position offshored.
The math is very easy: when an employee in India costs a third or less than an American employee, the offshoring will happen.
After all this is the investors money.
For many years companies have talked about talent: this is a piped dream; anyone is expendable
We can all thank Milton Friedman and his revolutionary proclamation that the purpose of business is to increase shareholder value.
Every business school has taught this in its MBA programs (disclosure: me too) ever since. And the effect has been management toward this goal ever since.
Throw in executive compensation via stock options to “align” executives’ interests with the shareholders and you get the situation many public businesses are in now. Think IBM, GE, and Boeing for starters.
Why were jobs sent offshore? Because that consulting firm said it would reduce costs, boost profits and “juice” the stock price.
Who sc--wed American businesses? The suits in the C-suite. And since they got theirs, they don’t care.
This is exactly what I see happening as well. It’s an executive / stockholder money grab. Keeping stock price afloat by cutting costs , and with media spin that it is doing great in the market.
Seems There is no real concern with product quality, Or keeping customers happy.
I can’t think of any acquired software product over the last 15 years that hasn’t followed the path of: profit squeeze by cutting costs to the bone until lack of investment causes profits to fall. Then sell off or divest . This pattern has repeated over and over.
It is always about money and stock performance - ask your pals at the amazon's and Nvidia's of the world. You as an employee have to look out for yourself and the company has to look out for itself - it is each man on his own - you can either sit and complain and cry about it for 10 years or get on with the program and make money where and when you can - it's not complicated!
If AK doesn’t move more high paying jobs to India, IBM will go bankrupt; this is why the board has selected AK for.
This has nothing to do with ethics, but money and stock performance as a publicly traded company.
The board and the CEO don’t care about the employees
JBM may be a profitable company but it run by unethical CEO and his unethical executives, which makes it an unethical company to do business with. No amount of Bluewash in the press can change that.
The recent layoffs and the NDAs prove this point. IBM is on an unsustainable path to failure.
IBM a great company, but many companies of jobs offered in the past can easily be outsourced to low-cost countries. If an organization as powerful doesn’t adopt this strategy, the competition will. Lowering costs and increasing efficiencies has always been the hallmark of sustainability. It’s always been prudent to keep shareholders happy,
It’s never good being one of the last rats on a sinking ship. IBM may do well at services, but software is all acquisitions and squeezing the cash cow while the best innovative talent gets the heck out once they figure out there is little in the way of true leadership and vision. It’s been a sad 10 years. Glad to say farewell - the grass is greener even in this climate.
It's just like playing "musical chairs" on the deck of the sinking Titanic.
Enjoy it while it lasts.