After the financials have gone out, still not at mid-single digit growth without Kyndryl factors. Should we expect more cuts this quarter?
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@4zsa - I believe there's actually NO severance pay with a PIP-based separation. Management uses the PIP process to build a sufficient body of evidence documenting "poor performance" so that a wrongful dismissal lawsuit can be defended in court. The way things seem to play out at IBM nowadays is: (1) There are RA's in your area, (2) The work of the fired employees get divvied up among the remaining employees, (3) Management starts complaining that you doing the work of what had been 2-3 employees is insufficient and "more is expected", (4) You're put on a PIP for not handling a massively increased workload that requires you to work evenings and weekends, (5) You're fired after 6 weeks with no severance for not be able to meet the insane and totally unrealistic PIP goals, and (6) Your manager continues to sit in their office and play with themselves while they look for their next victim. If your manager says ANYTHING about a PIP, even if you're not currently on one, make IMMEDIATE plans to leave IBM, because your days are numbered. So glad I left IBM -- there's not enough gold in Fort Knox to ever make me even CONSIDER going back to that he-l ho-e. It was a good place for a long time, but those days are over. 😕
PIP- Does anyone know what is the minimal severance is that they offer?
3kty IBM has an attrition problem! NOTE a large attrition problem. The top performers are finding greener pastures in startups for the risk takers, and in larger more established companies for the more conservative. Backfilling those positions is nearly impossible due to lack of qualified candidates and IBM’s reputation within the IT industry. IBM says they are a great place to work, but most top graduates don’t even interview. THUS IBM going off shore and down scale (collar jobs). IBM has a second problem. They have the wrong talent in the wrong place. Redhat competes directly with legacy IBM. There are two and some would say 3 cloud strategies. Infrastructure still is quite uncompetitive vs Amazon or Google. The RA process has run its course (eliminate a percentage of a given employee population using cost as the prime factor) Given the problems outlined above, expect the PIP process to become more in vogue. The RA process will still apply to businesses IBM chooses to not play in (almost anything not mainframe focused). IBM is reshaping themselves to becoming a “NICHE” player in the cloud. Nothing more. Gerstner realized mainframe was IBM’s bread and butter, and he built a services organization around their solutions. AK is pulling the same play but calling the solutions “hybrid cloud”, but he only has 1/2 of the playing field that Gerstner had. Until IBM offers up some innovations around mainframe/hybrid cloud Vs intel/public cloud, IBM is a one trick pony. Don’t expect much growth. NOTE the last analyst call with the CEO and CFO made this strategy very plain. The strategy and revenue growth were dependent on Z16 and its future. Everything else need not apply. SO will there be more cuts? Absolutely because IBM still has a lot of non-mainframe overhead
At this point, so many people are leaving there’s no need for cuts. With a strong economy, more and more people will leave and nobody filling their roles.
Oh, and PIPs. Lots and lots of PIPs ... which are much less expensive to implement, since there's very minimal severance.
Swell. So no longer large RAs (which bring unwanted media attention), so instead just a whole bunch of little RAs.
Death by a thousand cuts.
In his employee update today Wednesday 26th January, Arvind told ibmers that there will be no more large annual RAs.
Ever, or will they just call them something else?
In his employee update today Wednesday 26th January, Arvind told ibmers that there will be no more large annual RAs.
No You're all paranoid IBM is not laying off anyone this year Infact everyone is getting a 15 percent raise and stock bonuses
Not growing as fast as inflation. Interest rates on all that debt will rise. Expect cuts.
The analyst call at 5 eastern yesterday addressed some of this. The CFO said there was still 500 million to spend in 2022 for restructuring. (I took that as there is still some more streamlining via RA’s to come). Both the CFO and CEO said in answer to a question that the “major” parts of the remaining IBM are correctly sized, and the share holders shouldn’t expect any more “major” sell offs. (I took that to mean Watson Health isn’t considered major, and if they sell off anything else it will be in the 1-2 billion range) (yep Power falls into that camp) Finally both the CEO and CFO said IBM was hiring aggressively in GBS and they expect it to continue to grow. The result of the call for me was 1st q will be a little slower due to Z 16 coming, some smaller pieces of non-strategic IBM will most likely get spunoff, GBS will grow aggressively, RA’s will continue, and the exec management team believes the current strategic plan is working (Enterprise modernization via Redhat)
Absolutely.