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Buckle up folks

IBM will continue layoffs until it finds a business model that works and works reliably for many years. For the last two decades, Software, Hardware, and Services have taken turns playing the IBM not-me game. I won’t make profit, but I will amplify that other team which will directly own your profit. Without my synergy, you will surely fail, so you must keep me. Every couple years, a new profit maker is anointed and a new round of the game begins.

Even if they find a model, it needs to work reliably for many years. Not so long ago at the beginning of Watson (AI), a Watson kick-off meeting was held in Austin for the entire Watson management team. The business plan presented would rapidly accelerate to stratospheric heights in 3 or better yet 2 years and remain there for 20-30 years before starting a gradual and still profitable decline. Commoditization utterly destroyed this plan and business in 18 months. Models fail even faster in 2025.

In a world of cheap vanilla-grade CPUs, RAM, networking, and storage and completely free software, it’s hard to find a higher grade product that people will pay for outside of regulated businesses. And those who do unquestionably need the value add point to the cheap stuff and demand lower pricing. And the cowards in sales fear losing 100% of their commission and decide that a steep discount benefits both them and their client.

This is nothing new; it’s just come to IBM’s corner of tech now. In the 80’s there was a battle between two consumer video storage systems: Betamax and VHS. The cheaper — in both senses — won out. There were superior alternatives to Compact Discs for audiophiles, but the CD wiped them off the market. MP3 audio compression is terrible, but it dominated the music streaming and download business for a long time.

All 3 of IBM’s pillars (Hardware, Services, and Software) have experienced their own versions of this. That’s why they play not-me. IBM has 3 future strategies. Hybrid Cloud, which can’t sustain an IBM-sized business. AI which is already deep into the commoditization spiral and has as an industry accumulated over a trillion dollars in debt. IBM has already stepped off the AI stage, preferring to serve as high-end salesmen for partners’ actual products packaged up with an IBM bow. Quantum Computing: how many non-governmental clients will actually need this capability badly enough to shoulder some risk, finance the development costs, and pay ongoing support. Quantum computing could be the opening for IBM to become the CocaCola Bottling company of tech — providing a low-profit product that makes others fabulously wealthy.

Until these things change, IBM will have to undergo periodic amputations. When it ends in one or more passes through Bankruptcy Court, then we will discover how bad things can get.

A once failing tech company called Apple righted itself for a while by leaving the tech industry and joining the fickle fashion industry. Is there another industry where centenarian IBM might fit well?

Buckle up folks … and prepare for turbulence for the duration of the flight.

Perfectly said, @tq+1kb1metdd.


McKinsey Cuts About 200 Tech Jobs, Shifts More Roles To AI

The company isn’t ruling out additional reductions across different functions over the next two years as it ramps up usage of the technology, according to people familiar with the matter. McKinsey is also closely assessing what tasks can be carried out by AI, the people said, declining to be identified as the details are private.

https://www.ndtvprofit.com/business/mckinsey-cuts-about-200-tech-jobs-shifts-more-roles-to-ai


The future or futureless?

Layoff’s are one of the main tools to boost a companies stock price.
Now that we are doing that with some more room to go, the price has risen 48% YTD.
Again, there’ll be another round or two of layoffs of that I’m sure.

So the question is, after its all said and done and the stock is at whatever price its at…..does it flatline, go up or does it go down. A stock price bump is easy to achieve with even the announcement of the word “layoff” much less when you actually do it. So now that we are there….what does it look like going forward?

Does it have legs to keep running or does it drop over time back to where it was 2-3 years ago?


Bye!

US based Tier 2 tech department just got extremely thinned out. More and more US based employees are being let go. Think about your future because Verizon won’t. If you havnt heard anything by EOD I’d stop stressing as 30 day notice is Dec 19th which is our final date.


IBM Tried To Replace Its Workforce With AI But Hired More People Instead

With companies like IBM laying off thousands —
Microsoft laid off 9,000, Amazon ousted 14,000,
Accenture about 11,000 — it might be time to
seriously consider the future of this
displacement.
We won't be holding our breath.

https://www.bgr.com/2025199/ibm-tried-replace-workforce-ai/


So much for

So much for jobs coming back to the US. Mid and entry level jobs are disappearing by the tens of thousands and the trend is accelerating thanks to enhanced AI and its adoption across the jobs universe. Finance, law, entertainment are all in its crosshairs and the only people benefitting are those who can afford to play in the stock market. It’s time to rethink what’s happening around us.


I see no future left with this place

The fanatical obsession with meeting next quarter's numbers to mollify Wall Street is diametrically opposed to being a strong innovation company. The linkage between end customers and CRL and Divisions was very strong for decades. It covered all businesses. Major advances in road sign and road paint to improve nighttime visibility was a classic win-win. Think how many lives have been saved. Just pulled my winter gloves out for the first real cold blast of early Winter and love seeing Thinsulate.

Desi may have been a so-so CEO and perhaps a good example of Peter Principle, but the innovation didn't die with him. The problem began with James McNerney. He's the one who decided the penny-wise pound-foolish strategy of starving CRL to pay for bigger dividends or buying back shares was a winning strategy. WS loved the guy. Employees not so. Other than a 20% boost in 3M share price the week he was announced in 2000, the share price didn't beat the SP500 by much for the rest of his failed tenure. Inge borrowing billions to buyback shares and scare off activist investors saved his and Mike's job but left the company starved of new blockbusters.

Like Field of Dreams (build it and he will come), for CRL is needs to be "invent it and customers will come" - BBs obsession with NPIs only breeds game-playing (how about a peach colored sticky note, any one?). When Desi pushed for 30% of sales from new products, he at least fully funded CRL. BB, nope!

Just happy I somehow made it to the right age/experience to get pension and retiree medical support (although BB is sc--wing people over to be "competitive"). I see no future left with this place. Just pump it full of painkiller and break it off into pieces and hope the divisions don't end up with a Bryan Hanson 40 million dollar man doing what he's doing to wreck SOLV.

Perfectly said, @z9+1k9bbemrv.


Already bad leadership

Ultimately it’s probably better to find out now than waste more time. He’s a multi millionaire that is dangling layoffs and leaving everyone in the dark to punk us. What type of leaders makes those types of threats during the holidays? A bad one that is just a hatchet man that was sent to dismantle Verizon and dump on us. That’s the corporate life and the real world. He’s been on the board for multiple years he’s not looking to grow the company. He’s looking to drive shareholder value so he can exit and get a nice payout. If your store doesn’t close this time it will soon. The future is 100% online with AI. Buy a phone anywhere and then activate online. Hopefully you get a nice payout and then move on retail is dead.


Did somebody say AI was taking jobs....???

I remember about a year ago on this platform someone posted that AI would be taking jobs away from employees. Boy, was there a pushback on this point.

Many of the posts and reactions were never in a million years would AI be taking anybody's job.

Well maybe some of those in a state of denial can contact any one of the 4000 employees at Salesforce who got displaced to see what they have to say about it.

https://www.cnbc.com/2025/09/02/salesforce-ceo-confirms-4000-layoffs-because-i-need-less-heads-with-ai.html

The worst move we can make is to stick our heads in the sand and kid ourselves that we are so vital, nothing can take our jobs. The much better move would be to be in the group that "figures out how we can use AI to make our positions more valuable".

AI won't be replacing jobs that use AI but rather it will be replacing jobs that DONT use AI.

In the meantime here a sampling of just a few of the companies who already deployed AI to the detriment of employees in 2025 - the wave is coming.

By 2030..... well for those who continue to be deniers, you won't recognize how much the workforce has changed in just 5 years - things will change in the blink of an eye.... please get yourselves ready for what is to come

https://tech.co/news/companies-replace-workers-with-ai


Predictions for 2026: you make the future

Shell drones and NPC’s it’s that time again to predict and possibly influence the future

What are your predictions for 2026?

Will Shell domicile move from UK to USA for economic reasons or a regional event?
Will Shell purchase another operator?

What assets must Shell divest in order to succeed?
How is Wael being received as a leader of the organization?

Is the organization genuinely invested and rewarding simplicity?

You control the future