Thread regarding IBM layoffs

"All this while Ginni was just awarded 44K shares ($6M+) 3 weeks ago "

How is it that IBM not meeting it's overall targets (the ONE thing Ginni was responsible for) results in the rank and file not getting a bonus this year despite their individual performance (the ONE thing they're responsible for) and Ginni getting a huge one? What a crock.

All this while Ginni was just awarded 44K shares ($6M+) 3 weeks ago
(https://finance.yahoo.com/quote/IBM/insider-transactions?p=IBM)

Never have understood why GTS is singled out - GTS generates more revenue with greater profit and few people than GBS. Cloud revenue grows by $2B while GTS declines by $2B - they're just shifting how the $s are counted.

IBM still has 100K too many employees to be competitive... Let's get rid of half of GTS and half of GBS.

I'm in GBS and I'm hearing that the GTS-GBS merger that IBM has been talking about for the better part of a year is finally going to happen for real (so far it's been more on an external branding exercise than anything) sometime in Q2.

2snb. It sure looks like IBM intends to blow GTS up. Layoffs come next week to streamline GTS, GBS inherits Cloud, and remaining Legacy gets spun-off or sold outright. IF and I know it’s a big IF that’s true, there will be no GTS left for the remaining personnel. Perhaps the new CEO really wants to change how IBM presents itself to the world.

It doesn't sound like many people will be left in GTS after the dust settles. I wonder if some of those people will go with the "legacy' contracts? And I would guess the only buyers would be the Indian co's - HCL, Tata, etc ?

2sub. I believe the 6 month window means it will take 6 months for IBM to decide where you fit in, or to find a buyer for you to move to. It appears the plan is layoffs (rightsizing of GTS) then a breakup of the remaining portions of GTS with GBS taking all of cloud.

What does it mean in the below post that "layoffs will take 6 months to process"?

Confirmed this is happening with a reliable source in GTS. Cloud business will move under GBS management, legacy contracts packaged up and sold, RAs to get rid of bench, delivery teams that overlap with GBS, sales, and PMO. Reorg will take 6 months to process.

If IBM still uses UPS to distribute official notification and you sign up for UPS My Choice. You will get notified the day before about a delivery from IBM. That's when I knew I was on the list the next day.

I'm pretty sure the 30+90 is in place because IBM found that those of us on the 90+30 didn't give a s**t about training our replacements anyway. When FLM came to me and said that you need to train your off-shore replacement to get paid, I laughed. I spent my 90 days looking for a new job, using up my PT, doing stuff around the house that got neglected after slaving at IBM 55-60 hours per week for 20 years of my life.

What if you want to be included? Someone looking to retire end of year anyway may be interested.... asking for a friend.

2kqm is quite correct. The FLM’s get zero input. They receive a list and make the calls. IBM only cares about your cost to them. There is no other factor that they weigh with any weight. I have seen IBM lay-off Reps with 4 million dollar orders in hand who are 300 percent of quota. The FLM’s only reply to the reps was “at least you can bridge to your pension”. Tells you their view point.

From what I recall FLM get very little say expect as to how you are ranked along the team. They are mandated to create winners and losers during the checkpoint reviews last year. I assume that plays a big part in all of it along with other data that Watson can ingest.

Any idea how those on the list to be let go are chosen? Is it a top down approach based on meeting some criteria? Or do managers have to submit lists?

Yep, 30 days from 2-27 is what, 3-30. Just before Q1 ends. I'm sure that wasn't a coincidence in timing. They can announce on the next earnings call that the GTS problem has been dealt with.

30 days doesn’t leave a lot of time to train replacements. Those who remain will have a lot of work and p!ssed off customers to deal with.

Should help the non-GAAP numbers in the 2nd quarter. The "savings" in retirement is a good non-GAAP booster. Go look at historical GAAP to non-GAAP bridging. Focusing on the non-GAAP number when reporting has made the treadmill of RAs addictive.

Being laid off is a charge off for IBMs books. In the economy it is a positive thing and let's them show profit where it doesn't exist. You are no longer overhead as you are within the charge off number.

I am sure there is a margin for cancelled lay offs but it would have to be a pretty big demand and talent. Otherwise you can apply to start after your seperation settlement as a new hire.

Wouldn’t a 30+90 save them even more money by having less benefit costs to cover?

Me thinks the change to the 30-day notice was to ensure just that - you don't have the slightest chance of staying on in some other team. 90+30 or 30+90 comes out to the same payout. Why didn't HR think of this ploy sooner?

If you are on the list (as one person asked), you won't find out until the morning of the day they have planned to break the news. You should see an email bright and early from your FLM stating there is a mandatory meeting or call you need to attend. He/She will break the news to you then, reading from a prepared script that has been given to them by HR. I don't think there's anyway to know beforehand you are on the list - unless maybe the boss is a personal friend, and even then, I think they would be risking their job if they told you.

Once you are told, the countdown clock will commence. Your manager will tell you you can look for another internal job, but as others here have said, it is very unlikely any team will (or can) touch you at that point. If it turns out to be a 30-day notice, rather than 90, it's impossible you'll get picked up in that short time.

Wow!! Appreciate the information and communication everyone no matter what the news is. It really does help prepare for what's coming. Good luck to all!!!

Ginni should have been put on a PIP seven years ago. Hypocrisy?

if one is put "on the layoff list" are IBM managers not able to hire them, like it has been handled with other IBM Resource Actions?
And, when do the managers have to submit their layoff list to HR?
Thanks

I have been hearing 2/27 as well. If memory serves me correctly, the last 2-3 big layoffs were on Thursdays. The 30 day notice and 90 day severance are pretty much the same thing they were offering the past few years, but in reverse. Either way, you are paid for 120 days, just now you don't have to go in and suffer the indignity of being a dead man/woman walking for 3 months.

I was hoping they would bring back a more civilized package, like two weeks for every year, but that is too much to ask from these people.

Another thing with the 30/90 thing is that there is ZERO chance you will have time to get picked up by another org (not that it was very likely before). But now, it's completely gone.

Are all GTS sales being PIPed or just some offerings? Shocking if all are being PIPed.

I quit IBM this year because of the management and executives. I saw through the smoke and mirror show and got the hell out. They have no clue how to manage anything.

I can confirm that PIP’s were handed out within the remaining USA sales force. Not sure if other divisions would be hit, but it’s most likely a good bet. Not sure what the percentage of folks to be hit will be, BUT the CFO did say a restructuring of approx 1 billion will be taken (his exact words were on the high end of what IBM had spent in the last couple of years. That comes to Approx 1 billion if we use the high end of the last 3 years. (the charges were 250m, 400m and 1.2 billion). The timeline of next week makes perfect sense as Feb and March align quite well for an exit before quarter end. I would expect next wed-fri for the notices to go out. GOOD LUCK to all as I think this one is going to hurt as IBM wants to realign itself

Any other areas within IBM being hit? Systems?

I have heard may be largest GTS resource action to date. Also heard 30 day notice and 90 day payout. Does anyone know for certain if 2-27-20 is the date? Asking for a friend....

From the latest it will be 25% of GTS being laid off worldwide. It will cross everything from sales, delivery, executives (hear middle management is going to really get hit), etc. Told the news should come 2-27-20 and it will be a 30 day notice with 90 day severance.

@1sp - WOW IBM is being generous again with 90 days.

@1axv - I can give you names of one 2LM and five 1LM's that have been released in the last 2 years alone. A handful in prior years.

90 days paid severance. Lay-off for USA employees. Includes executives, FMLA, Maternity, short term disability!! College grads, new hires, contractors excluded. Managers directed to document low performers and document performance plans. Employees with active HR complaints excluded..

I lived through the last 3-4 layoffs we've had since 2017 here in GTS. I don't recall one single manager being let go. Always, always it was the individual contributors let go. Top performers, low performers - it didn't matter, as long as it was a headcount to make their numbers.

I don't recall anyone outside of the US being hit on those rounds, though it's possible some were. It's all done so quietly. No one really knows who got cut until the goodbye emails start filling up your inbox the morning of Day 90.

Anyone from GTS cares to comment?

I was RA-ed from GTS in 2017.

Good luck

Locally there’s barely anybody left in GTS except tons of “executives,” Distinguished Engineers, and sales people who don’t do anything. There are a handful of competent, hard working local staff left who have to make heroic steps to balance sales and delivery since their top heavy organization is just dead weight. I have worked with several people like this over the years. I feel very sorry for those people because they will likely be the first to get cut. My moneys on the 10% consisting of any local staff remaining at B10 and below, and cuts to the India, Brazil, and Poland delivery centers since they are severely underutilized. Doubt we will ever see the executives shown the door but would love to see it some day.

The oldest 10% no doubt.

• Expected 10% of GTS will be laid off. HR is talking to management tomorrow.

• Unsure of timing (assuming in the next week or so) and what parts of GTS will be affected.