Thread regarding IBM layoffs

AI, AI…. What a joke! Especially for coding. I gave 10 different coding assignments to both Claude and Bob as I wanted to compare since Bob is supposedly based on Claude. They overall both failed miserably. Only for two of the assignments I got code that was actually working and the quality of the code was less than stellar.

So, what is the point? Yet tech jobs in the US are dropping like flies.

I bet the CS degrees at the US universities are going to see a lot less enrollments going forward with that AI cr-p!

As goes Kyndryl so goes IBM Consulting. Both rely on cheap labor to make a buck on unsustainable contracts. It’s a dog eat dog world in the commodity labor marketplace. IBM has a slight advantage here in that they can leverage their monopoly (mainframe) power, along with their recent SW purchases to enhance the contract engagement pool, but the handwriting is on the wall. Cut labor costs or face the wrath of wall street. Kyndryl is indicating that they need to reduce costs by 15-18% to essentially break even. YEP thoses costs short term come out of labor. IBM consulting will follow suit as they are graded quarter to quarter, and the AI labor saving initiatives only enhance automation thus reducing headcount. No matter how you slice it, labor will be reduced as automation takes over.

That’s fine just as long as Albany is unaffected. Everyone else can get fu---d

Get ready consulting. AI is finally starting to gain some traction and that means repeatable jobs will be eliminated. AI 2-3 years ago provided very little return as 80% of the workforce was still required to handle 20% of the requests (eg human labor was still cheaper than automation, just reference IBM’s HR experience). AI today has gotten much more focused and efficient THUS repeatable tasks are now being eliminated without the need for humans to backfill (essentially automation has finally crossed the line and become cheaper than human labor, just look at SW coders)

https://americanbazaaronline.com/2026/05/06/cognizant-eyes-up-to-15000-layoffs-india-set-to-bear-the-brunt-480243/

IBM India could easily remove 25k worth of employees, given the remaining 400m still in the 2026 budget for restructuring.

Remember it’s all about costs, and IBM’s CFO has executed a two prong strategy over the last 5-7 years.

1. Eliminate higher cost human labor with lower cost human labor via offshoring
2. Eliminate lower cost human labor with lower cost AI automation

@d3 isn't Cognizant run by some Indian slobs also ? Same horrible culture and lack of ethics

Keep your eye on Cognizant and what they do, as it mimics IBM consulting the closest. Same amount of revenue and enterprise engagements.
NOTE Cognizant just announced Project Leap which is estimated to reduce headcount in the 12-15k range via a 230-270 million charge. NOTE Cognizant employs a significant amount of folks in India. If we apply the same metrics to IBM (400 million restructuring remaining in 2026) that says IBM consulting may be in for a big change.

https://www.instagram.com/reel/DW0LhFsDk2L/&igsh=NTc4MTIwNjQ2YQ==