Thread regarding IBM layoffs

This is about fooling Wall Street

This RA were done to make room for merging GTS and GBS and then alligning legacy business including consulting with fancy name of cloud and fooling Wall Street in Q3 by showing their cloud business grow by 20-30% instead of declining true IBM cloud business.All different business groups of GBS and GTS are getting merge to make it come under cloud business and before that RA was done in different groups in range of 25% + and some small independent teams upto 90%).This 2000 number is wrong number if you look at RA across all countries.True number are way too high and it will come up in few days timeframe.

Well said, @ZvXCEYF-uss.

by Anonymous
| 2191 views | | 5 replies (last June 12, 2019) | Reply
Post ID: @OP+ZvbFBuZ
Comment! It's anonymous!

5 replies (most recent on top)

I would say IBM needs to go down approx 100k. It gets them in the range of revenue per head count where most companies find efficiency including past periods of IBM. I have zero idea if 100k is in IBM’s plan, BUT they have certainly shown you the path they plan to take. OEM related services will be jettisoned, HW commodity like products will be sold, layoffs/redundancy’s are already happening, and SWG sellable products have been sold/spunoff. There are most likely other “hybrid” parts of IBM that don’t fit nicely into the Cloud/Cognitive future. The low profit part of GTS (mostly relocated to India) seems to be ripe for some re-org action as the IBM burden put on their division (25-30%) has already made them profit neutral. Ginni calls them empty calories. They fulfill a very needed service for IBM, BUT why own/manage it, when you can joint venture it off, and pocket revenue from the backlog they are carrying

by Anonymous
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Post ID: @1mox+ZvbFBuZ

Yea, I was gonna say. I don't think 1700 heads would make much difference (apologies to those that got the crop but lets be realistic) ... but IBM needs to layoff at least 33% of their workforce ... with the cuts coming from executive and management ranks only.

by Anonymous
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Post ID: @1bxq+ZvbFBuZ

Increasingly looks like it

Spinoff like CSC?

by Anonymous
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Post ID: @1eyq+ZvbFBuZ

GTS is revenue challenged because of the management towers and IBM internal process bloat.

The amount of salaries IBM pays for internal compliance is mind boggling. It's a cancer.

by Anonymous
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Post ID: @cko+ZvbFBuZ

If what you say is true (which I believe) then we should see GTS crater in 3rd q. That will be blamed on withdrawal of OEM (markets we choose to play in). Poof problem solved ehhh. So now what does IBM do with a GTS that is revenue challenged since it was raided by GBS. Spinoff like CSC?

by Anonymous
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Post ID: @fmc+ZvbFBuZ

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