Multiple sources told us senior managers were this week informed about the changes that will see IBM try to shed the dusty hardware, software and services silo structure.
The main units will include Research, Sales & Delivery, Systems, Global Technology Services, Cloud, Watson, Security, Commerce, Analytics. Mobility is expected to overlay some divisions. ...
The next phase will see IBM reassess whether it needs to cut costs further, forcing through compulsory redundancies. We have been told this could be a significant programme, with a well-placed source suggesting the cuts could run to tens of thousands. Whether it will be similar in scope to HP - 55k jobs cut - is not clear at this stage.
Selected reader comments follow:
Any hoo, the "voluntary" programme was such a rip-roaring success they have cancelled the planned compulsory programme. What does that tell you about the morale and the planning which somewhere in the region of 200 people have been doing recently? Retire, go contracting, or just find a job else rather than put up with it any more.
But I'm sure there will be a fresh compulsory programme, based on squeezing out people who didn't top out on the "CAMSS" quiz...a massively irrelevant bullshit bingo quiz which we were required to "pass" as a sign of being up to speed.
Not surprising to see GTS kept on the side lines...absolutely stacked full of dead wood from my experience apart from one or two bright sparks. Whilst I would selectively buy from my former employer, I wouldn't touch that part of the business. Which is why other parts of IBM will go out to the market rather than partner with them.
f you want to be thought of as, forget about great, a reasonable employer, you should give the employees some forewarning which would allow them to find a new position. Employees often don't mind leaving, but dropping people without any warning is just cruel and unnecessary.
IBM definitely plans these layoffs months in advance and could provide a warning. It would probably even be to IBM's financial benefit to tell employees that in six months they will be laid off because many of them would leave voluntarily in the interim instead of taking a small severance package...as you did.
Then again, considering how many applied, it would have taken some time to do this. My guess is that you were told you were too valuable by your manager in a vain attempt to raise your morale.
Most of us are either leaving for work elsewhere, or sitting around doing as little as possible until the inevitable next round of redundancies. There's no work because all the salesmen got sacked, and we keep getting told to "transform" ourselves to align with the new "strategy". But of course, there's no funding whatsoever. Education is banned, even if it means turning up at a customer and working from a Redbook. Non-customer travel is banned, so we can't even meet up with colleagues and learn from each other.
Instead we have countless "webinars" and "video blogs" all of which spout out the same marketing bullshit with no actual content whatsoever. Apparently wasting 40 hours of our time each year watching this shit counts as education now.
Nobody's had a pay rise for years now (they're banned too) and the rewards for doing well each year are so minuscule that there's no point in trying any more. Because we've all got email on our phones now, and there are no longer any offices to go to, we just do what we want all day, which to be honest is actually quite nice, considering we're getting paid for it. Occasionally we get dragged into talking to customers and pretending to know what we're talking about. Honestly, I could probably get a part time job elsewhere and I doubt anyone would notice. My manager wouldn't. I've never even met him.
Anon because I still work there. Sort of.
It's so strange to see such an iconic company that basically defined a large chunk of business computing in the 20th century like this -- selling off anything that involves physical hardware to the highest bidder. From what I've heard from colleagues, it was always kind of a strange place to work, but lately it has taken on a whole new level of strange.
In any org that large, there's bound to be a fair amount of dead wood hiding out. I work for a fairly large multinational and we see it all the time — multiple layers of management that basically exist to provide promotion opportunities for key staff, whole product divisions whose product has been cancelled, but somehow they're still there, and so on. Cutting or moving truly dead wood is one thing, but from what I've heard, IBM has started hacking off the living bits now. I'm sure it will get worse as the entire management tree in each of those silos they're looking to kill starts scrambling for survival and throwing the actual workers overboard.
I wonder what will happen when businesses finally migrate completely away from mainframe, iSeries and AIX...it'll be interesting to see a massive top heavy org like IBM try its hand at white-shoe management consulting as its primary business.
HIT – After 3 disappointing quarterly earnings in 2014, IBM admitted the $20 EPS would not be possible in 2015. Cuts throughout 2014 in IBM have seriously damaged the company. IBM continues to alienate itself with its customers. Revenue continues to drop. There are management crises in many parts of IBM but this isn’t obvious to the outside world yet. The board is getting a lot of heat.
IBM’s new strategy in 2014 was to double down on its old strategy – CAMSS – Cloud, Analytics, Mobile, Social, and Security. The only problem is IBM’s existing businesses are declining faster than the new businesses can grow. Until IBM stops damaging their Services divisions and repairs them, IBM will continue to falter.
Selling tech as-a-service is one of the five strategic pillars on which Big Blue has staked its future – alongside mobile, social, big data and analytics.
But, at least according to some IBM Business Partners, it seems the grand old lady of tech has created channel conflict in mid-sized and small business customer markets.
One, who spoke on the condition of anonymity, complained IBM had tapped up all of his firm’s Collaboration Software customers in a bid to get them to partake of the Bridge to Cloud. ...
“IBM can book the ‘new’ services revenue as cloud revenue,” the source claimed. “It is a quick and dirty scheme to inflate their cloud sales numbers. They are not new, they are simply gutting their software numbers”.
The world's No. 1 PC manufacturer says the offers are voluntary and includes several business units. ...
The buyouts were offered to workers in the recently formed Enterprise Business Group, which includes the recently acquired x86 server business unit from IBM (NYSE: IBM) and "other business units as well," Gorman said in response to a series of questions.
In the early goings of 2015, International Business Machines Corp. IBM 0.44% shares are down over 2 percent year-to-date. ...
Poor Fundamentals And Getting Worse: The fundamentals for the company are bad and aren't getting much better.
Weaker-than-expected software sales, lower productivity in services and customers abandoning data storage hardware in favor of the cloud are just a few problems plaguing the company.
Despite cutting jobs and shedding its unprofitable chip unit, Globalfoundries Inc., IBM shares continue to be in a free fall since flirting with $200.00 in July 2014. ...
Only time will tell if IBM can see $200 again. But it's clear the Street doesn't think it will.
Pros: I've always been happy with how flexible the job has been. If you need time for a doctor's appointment or something, you just take the time. No one is looking over my shoulder or tracking anything. Working from home is an option, and also flexible. I've also had great teams, and most of my managers have been good. Overall it has been a positive experience.
Cons: Salary — very poor, not competitive with other companies, and getting worse as the Burlington fab has been the anchor on Ginni's plans. Morale — yearly layoff's have taken their toll. Nearly everyone I talk to is grumpy and pissed at IBM. It's really made it an unhappy place to work. I used to enjoy my job, now I'm mostly putting in my time.
Advice to Senior Management: My immediate (first level) management has always been good but they are completely limited by the decisions of upper level management. Those decisions have caused our best engineers to leave for other companies and 1st level management has nothing they can do about it. High level management needs to care about their employees more than their shareholders or they will drive the company into the ground.
Pros: None except a few bright minds that don't stay long.
Advice to Senior Management: The company is too big to get affected by this advice but seriously, if you are hiring professionals, let them do their work and leave them alone with your political ****. Pay more In the end, just quit.
Pros: Working from home. IBM has mastered the telework culture and actively encourages its workforce to give up their offices and work from home.
Cons: Pay is not competitive. Since we work from home, we are expected to always be available. Billable hours expectation means you have to work one hour overtime for every one hour of vacation time.
Pros: Some interesting engineer opportunities. Great tradition. Comfortable chairs.
Advice to Senior Management: To executives: Get back to be being a *great* engineering company and invest in doing something great. Eliminate the current appraisal system. To managers: Stop being afraid. Act bold. Inspire.
Advice to Senior Management:
Pros: A lot of opportunities. Some very driven people to motivate you. Recognition.
Cons: Compensation is lower than most. Make employees feel like a number. Long engagements mean you feel very detached. Lack of a social IBM.
Advice to Senior Management: Making employees feel like they are part of the company is important to any business, and this becomes critical in a business this size, IBM needs to work hard on this because it is significantly lacking behind its competitors in this regard, and will lose all of the top talent to those who spend more time and effort on this.
Cons: Easy to get lost in the fray. Difficult to transition roles or change departments. IT support staff was non-existent. Engineers had to constantly solve their own IT/networking issues, taking critical time away from the real job. Performance evaluations are a farce. IBM is changing its business model and is probably abandoning the semiconductor manufacturing business, which might explain the decline in support staff.
Advice to Senior Management: Cease splitting up teams around the world.
Lenovo is blaming IBM for sending too many duplicate and non-essential positions over with the buyout and not adequately reporting on what folks actually did relating to System X. I believe this to be accurate based on things I saw during the phase to "determine if you were in scope for the transition". Our manager at the time told us you had to work on System X for at least 51% of your time to even be considered, but friends in other divisions were saying that people on their teams who didn't even touch System X were being sent over. The common factor (anecdotal) was the person's age. The theory at the time: "let the layoff be on Lenovo's books and spare IBM from further claims of ageism" -Grass is brown everywhere-
Your manager can require you to perform practically any legal task as a condition of employment, and business travel is certainly legal. Other legal protections are very narrow. For example, you can probably refuse business travel to dangerous areas (on a State Department travel warning list) and be legally protected in that narrow sense, and, if applicable, the Americans with Disabilities Act requires IBM to make reasonable accommodations. Those are pretty far-fetched, though.
You can try appealing to reason — a novel concept, I know. If there's work you can effectively and productively perform remotely, great, tell your manager, and point out the fact that's also great news for IBM since it avoids unnecessary business travel expense and wasted travel time. If there's somebody else you know who wants to take on the mission, great.
You could discuss options with your manager to cut down on the number of flights if that's the problem, such as renting medium-term corporate housing better suited for a long-term project. That should cost IBM less money anyway (less airfare), and your family can then stay with you (at your expense). IBM has negotiated rates with short-term apartment-style corporate housing firms precisely for this purpose.
Or, if you cannot come to an agreement, you can (politely, preferably) say no, and IBM can fire you if it wishes — as IBM already can since you're an at will employee without a union contract. -Mobile IBMer-
As one of its first orders of business upon convening Tuesday, the Republican House of Representatives approved a rule that will seriously undermine efforts to keep all of Social Security solvent.
The rule hampers an otherwise routine reallocation of Social Security payroll tax income from the old-age program to the disability program. Such a reallocation, in either direction, has taken place 11 times since 1968, according to Kathy Ruffing of the Center on Budget and Policy Priorities.
But it's especially urgent now, because the disability program's trust fund is expected to run dry as early as next year. At that point, disability benefits for 11 million beneficiaries would have to be cut 20%. Reallocating the income, however, would keep both the old-age and disability programs solvent until at least 2033, giving Congress plenty of time to assess the programs' needs and work out a long-term fix. ...
Social Security advocates are almost universally aghast at the change. "It is hard to believe that there is any purpose to this unprecedented change to House rules," wrote Max Richtman, president of the committee, in an open letter Tuesday, "other than to cut benefits for Americans who have worked hard all their lives, paid into Social Security and rely on their Social Security benefits, including Disability Insurance, in order to survive."
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