Anyone else heard about lack of approval for hiring even in areas key for growth?
To me, it is a sign that they are preparing more layoffs, maybe to help make the 2Q earnings results (due July 17 I think), look a little less ugly.
11 replies (most recent on top)
Don't look for layoffs until 4Q or 1Q this year. A lot depends on how the Red Hat strategy is actually implemented and how that implementation impacts the rest of IBM. The areas with the most to lose are those who formally competed with Red Hat; Red Hat will become the lead and the others will be phased out (and will be where layoffs occur).
IBM RA-ed me and 5000 other U.S. workers a decade ago shortly after posting a very nice profit. Now when IBM sales rep make contact to me, I never respond. I wonder how many other former IBMers who are now in purchasing positions do the same thing.
RA’s vs Revenue is just called a death spiral Each reinforces the other. The only way out of death spiral’s is to change course. That’s the biggest reason IBM bought Redhat. It’s a change of course where IBM management doesn’t have to admit that they had driven the company into a death spiral and had no way out. IBM stating that they are going to keep Redhat independent only reinforces that narrative. Look for Redhat to grow within IBM via raiding current IBM talent (yes IBM has talent) out of other divisions. That will only reinforce the death spiral of the remaining “legacy” IBM, but that’s why IBM stroked a big check. They bought a new strategy and will morph old IBM over to the new strategy over time. Should Ginni be held responsible for the death of old IBM. You bet she should, but instead if the purchase works, she’ll get praises and honors even though she and Sam Hemorrhages billions. She should have been sacked at the end of her 4th year. She gets a one year pass for what Sam handed her, then she gets 3 years to implement her strategy. She decided to double down on sams strategy. Not much of a CEO if you are just going to copy sams work
My biggest gripe with Ginni is that she did not immediately put an end to Palmisano's policies - especially the roadkill stuff. If that money had been invested in IBM's long term future instead of pleasing short term investors we might be in a very different situation today. But yes, today's damage was initiated by Palmisano.
RAs are going to keep happening. This is the only way IBM can compensate for falling revenues. Unfortunately for IBM, the more they layoffs the more the revenues go down because evidently they always lay-off people that are bringing revenue in.
It is just a vicious circle...
It's remarkable how many don't understand the long-term consequences of bad leadership. Every decision Sam Palmisano made over his 10 year or more term led IBM to was it is today. Sam intentionally refused to invest in Cloud, divested huge parts of the business that went on to become extremely successful elsewhere (Lenovo PC) , and more importantly, Sam focused 100% on Earnings Per Share - rather than innovation, creativity, and investing in IBM's employees. IBM has been falling for a long long time. Thinking all was well until Ginni stepped in is the most ridiculous notion these forums create. Sam left a ticking time bomb that Ginni has (somewhat poorly) been trying to put out for the past 6 years. What are the long-term effects of Ginni Rometty? Only time will tell. If in 5-6 years after Red Hat IBM is on top of the world you can thank her for it – though I'm sure the local id–ts will give credit to whatever putz is currently CEO, as is tradition.
The work environment is so toxic management was asking employees (a few months ago) to give IBM good reviews on Glassdoor.
Ginni will go down in history as worst CEO in the history of the company. IBM is a horrible environment thanks to her stupid a– decisions. Significant technical talent is leaving the company as business continues to fail miserably.
Do not wait for another RA to happen, especially if you are over 40.
Use your time now to find another job outside of IBM. Don't delay.
Why become another victim of Rometty's actions.
It could also be that everything is frozen until they absorb the new acquisition. Everything stands still until then. But there is no doubt that layoffs will happen then.
There is going to be one this month in global markets.
And to your point, there's a surge of resignations of top people and leaders, especially those with portable skills...and no backfill allowed.