The report cited Bert Stach, a labor union representative who was on the supervisory board of IBM Deutscheland. Almost 2500 of the jobs being slashed have been ‘relatively’ decided. It is still unclear as to when these layoffs will be conducted, and if they will be through pink slips or voluntarily resignations.
Selected comments from Seeking Alpha follow:
As a result, companies can choose to hire consulting companies like IBM or try to rebuild their IT staff (they could also choose to do nothing and we will miss them). Option 2 seems like a no-go since CIOs are generally business managers who have lost touch with technology.
For what it is worth, I am a 50 years old Chief Architect and I can assure you I am not outdated. During the week-end I play with Swift and Node.js projects. During the week I work on serious stuff.
Nationwide campaign. The three former employees sued IBM on behalf of themselves and a class of similarly situated current and former employees alleging that it violated the ADEA and the NYSHRL when, in 2013, it cut its older workforce and then engaged in a nationwide advertising campaign to replace the older workers with recent college graduates. They also alleged that IBM offered two of them severance packages that they could access only if they signed general releases within 30 days freeing the company from liability for, among other things, age discrimination. They contended that IBM offered the packages fraudulently and in bad faith because the premise of the offer was that it was engaged in a nationwide “resource action,” not that it was intentionally replacing older employees with younger employees.
Advice to Management:
Pros: I have worked in IBM Poughkeepsie for many years now in software and hardware development. I have been both an individual contributor (coding, design, test and client support) and in management. What I love here is working with brilliant people on very challenging and innovative projects. You can make a difference with clients, business results and sometimes the world.
Cons: Some of the people here feel entitled (you need to keep your skills relevant as technology and the industry transforms).
Advice to Management: Get rid of the people with outdated skills and an entitled attitude. Continue to bring in people with skills, passion and a drive to excel, learn and grow our business.
Pros: I love that I get to work with some of the smartest people in their respective industry. I work on a great small team that allows me to be creative and do things on my own. There are tons of opportunities to shadow people, take on stretch assignments and learn about other parts of the business without having to leave...it's very easy to make a big career change and most of the time it's encouraged. Compensation in my field is unmatched anywhere else. Also, the flexibility to work from home is a plus.
Cons: It's very difficult to get groups to follow cultural changes. A lot of IBMers have been around for a long time, and to get them to change the way we do things is like moving a glacier. I will say that there are great efforts IBM is trying to change, but it really is impossible to make any sort of change until upper management steps in...and even that takes a long while.
Pros: Good work/life balance. Exciting marketing announcements and investments. Front line employees have good intentions. Brand recognition on your resume. Ability to work from home.
Cons: Very low employee morale. Customer relationships and influence eroding due to legacy products/services, archaic pricing models, company inflexibility, lack of agility, employee turnover, and customer audits.
Very high employee turnover, often times within the ranks of the best and brightest. Company culture does not encourage sticking your neck out, transformative ideas, ways of doing things.
Getting things done internally takes a herculean amount of effort due to stifling bureaucracy. Tribal knowledge as a substitute for thorough training. No one has any real decision making ability until you reach the Vice President level.
Centralized directives oftentimes ignore local market realities. Constant threat of layoffs creates a culture of desperation and fear.
Advice to Management: Invest more time and resources in our customers — stop breaking relationships through reorganizations and audits. Empower first-line managers and front line employees with more decision making authority — they see customer market realities firsthand (decentralize).
Trust your people. Be transparent about strategy within the divisions, don't keep us in the dark.
Be clear about layoffs — when, why, and how deep.
Encourage career growth — stop hiring freezes and manager blocking.
Kill the quarterly focus madness — this drives our customers crazy and incentivizes behavior that mortgages the long-term future of the business units.
Refocus on the core company values — current company culture needs a major overhaul. Turnover is killing the business.
Pros: The following review is depend on one's immediate management chains. With few exceptions, IBM's policies and management are very flexible when it comes to working remotely or accommodating various life situations (sick days, doctor visits, etc.) Additionally one will work with great colleagues who are extremely talented and committed to transforming the company.
Cons: Although IBM has committed to change the performance evaluation, the jury is still out as the program is not fully implemented. But under the old system IBM uses the "normal distribution" rating system, where at the end of the year each employee is ranked as a top contributor (5%), above average contributor (15%), average contributor (~75%), and bottom contributor (5%). This curve is difficult to apply as one can have a team of high performers and end up being "average contributors" at the end of the year, because there just isn't room for all to be top contributors.
This ultimately has a negative impact on salary raises as I have been a consistent "above average" rating in the last 10 years, and my raise and performance bonus were ridiculous mere 1.0-1.5 % of my salary. To further compound the issue is that IBM provides you a "market range" for your job class family. Even though I have 10 plus years of "above average" rating, I'm still at at the low end of the range (73%) of the market mid point.
It's unfortunate, but IBM does lose a significant talent base due the Performance Evaluation and Salary guidelines. Career opportunities, while enormous, are typically limited as one needs an 'executive' sponsor who has the pull to promote one through the ranks.
Advice to Management: Continue the efforts with transforming the company and focus more on employees. We are your number asset and all non executive job opportunities must be open to all and not the selective few.
Cons: IBM is still focused on mainframe. From a sales perspective, most of what we do is work on projects to wrap around mainframe. Seems like that technology is the cornerstone of what we work on.
Advice to Management: Younger employees are not used to mainframe technologies. Should focus on more modern technologies. IBM is still focused on mainframe. From a sales perspective, most of what we do is work on projects to wrap around mainframe. Seems like that technology is the cornerstone of what we work on.
Pros: 1) If you don't have a degree or if you have a criminal record, this is the place for you. They will hire you. 2) You can do nothing at all for your entire 'career' and still get paid. Nobody cares what you do. Performance is not acknowledged so you might as well do nothing. 3) You cannot get fired. Even if you commit a crime in public, even if you never hit your targets, no matter what you do, you will not get fired. Simply because nobody cares what you do or who you are.
Cons: 1) Management has all the power and will go to incredible lengths to destroy the whole organization. 2) Long, cumbersome processes for literally everything. Getting my P45 form took 4 months. 3) 90% of the employees have been there less than 1 year. They cannot retain employees because it is a horrible, depressing place. The 10% who are there more than 1 year either have no degree, a criminal record, or are too old to be employed anywhere else. 4) Food is disgusting and crazy expensive. 3 euro for a coffee, 8 euro for lunch. 5) It's in the middle of nowhere (Mulhuddart) and you have to pay 7 euro a day for the shuttle bus. 6) No health insurance, no benefits, no stock plan, absolutely zero benefits. 7) Would not even want my worst enemy to work here. The IBM Digital Sales Centre in Dublin is worse than death.
Advice to Management: Wake up. Realize that 90% of your employees are walking away because you treat them horribly. Management is the worst I have ever seen in my entire career. They are arrogant and lazy. Completely no idea about how to run a company. They stay at IBM because no other company would ever hire them. This is the reason why IBM revenue has been declining for 12 quarters in a row.
Pros: If you are at your 40s, don't expect growth for your career, like to have easy, lazy workdays and have the mindset: "it's not my fault". IBM is the best for you.
Cons: Legacy of IBM is not in the business, product or strategy; it's in the people. IBM campus are filled with 40-60 year-old employees, managers, executive who have been working with IBM for their whole lives. There is very a small percentage of new hires and employees with 3-4 years of experiences who are the only actual productive part of the company. The new hires and young engineers are the main force to create any products, since they are inexperienced, lack of of guidance and so building bad products until IBM buy companies that have the same products with much better quality.
Beside mainframe, WebSphere, IBM can be considered as a high-tech Best Buy, or Target, not a innovation company as its marketing and executives claim. It's true for all business divisions, at Software Group, juniors engineers are the main coder, at GBS, junior consultant come to customers and make them mad because of the lack of skills.
Trust is built at IBM from the history, not for the current skillset and performance. Even the same applies for executives. It was a very sad day to see Lance Crosby left the company, he was the only hope to get IBM Cloud up to the level of Amazon. But the CEO chose someone she has been working with for awhile instead of someone can actually bring fresh air and innovations to the company.
Existing employees are so laid-back, they like to work more on PowerPoint, and join meetings than think and be productive. Managements = process, executives only 'execute', not much of thinking, and the CEO is talking about 'bets'. Any new strategy is a bet for her, so she is herself not confident about what she is doing and where the company is going.
Advice to Management: Learning is the key; don't let IBM processes stop you to learn. Learning and driving your team. Don't just try to please upper-management with some made-up numbers, product milestones with very bad product quality and ... lies.
http://www.endicottalliance.org/thedisintegrationofemploymentinIBM.htm To all Alliance supporters, send and share the above link to the article "The disintegration of employment in IBM" far and wide. Put it on your FaceBook page; send it to newspapers; send it with comments to your political reps and send it to your co-workers. Help break the secrecy of IBM job cuts. Put some pressure on IBM. -Alliance-
When I first joined my blood was so blue. I was extremely proud to be an IBMer. Slowly that eroded as the corporate greed spread like a violent cancer among my team and every other team that we worked with.
I have a feeling that one day we will all watch an episode of"American Greed" featuring the current IBM's fuzzy non-GAAP accounting methods and how they ran an American icon into the ground. What a bunch of idiots running IBM.
Go ahead and keep sending the jobs to third world countries. In fact just hurry and sell to TCS, might as well be Indian run anyway. Jerks. So smart and yet so dumb. -Gone and Happy-
Ginny kept pushing people to take the Cloud certification training, as well as the monthly Friday seminars, but the company would not make any of these new technology areas available for those of us who wanted to stay with the company.
I contacted TV stations and networks about reporting ongoing IBM layoffs, but none of them have the motivation to do it. You wonder if IBM has media held by the balls, that they will not report anything.
To Ginny we are nothing but numbers. Perhaps we should all send (bombard) pictures of our families to Ginny, so she and her fellow henchmen (henchwomen) can see the faces of who are getting impacted by these layoffs. Maybe this will give her an ounce of humility! -Anonymous-
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