new ceo same old style of running the company - just get rid of as many people as you can for a short-term gain and completely ignore how this'll affect everybody and even the bottom line in the long run. this kind of thinking is exactly what removed us from the position of a leader and relegated us to an afterthought.
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In reading the subject line, I believe you may be mistaken. IBM had several objectives to achieve with the RA’s. They have been discussed on this board for the last few months. Let’s take a look
- Services needed to streamline. We can definitely say that happened yesterday in NA. 40% GTS and 25% GBS restructuring numbers were thrown around. It sure looks like those number may have been achieved. We will have to wait a few weeks to see if Europe/Asia/India follow suit
- Due to the purchase of Redhat, the existing IBM cloud team had to be streamlined as overlap existed. IBM placed their bet on Redhat at the expense of the existing IBM team. That sure looks like it was also accomplished. There is certainly more to be done here with the Europe and India teams
- IBM has stated they needed to exit commodity businesses. The Austin house cleaning sure looks like Power was the commodity target. Storage Looks to have survived, but that may change
- IBM needed to exit low margin perform businesses via a spinoff/selloff. This may still be in the works, but you have to streamline before you try and offload a low margin business. This is most likely the next shoe to drop, and possibly the way the CFO funds Europe/Asia/India restructuring
We're paying ginni 20 million to leave
Maybe we could pay her more to leave sooner!
When are they gonna cut costs on execs? We're paying ginni 20 million to leave; how many regular employees could that money pay for?
Whats wrong with you people. What you not understand. So long as revenue and profit continue to decline - the only effective ways to reduce the slide is to cut your operating costs and try and prop up your stock with buybacks. (Buybacks are out now due to all the money they borrowed for RedHat). So its cut costs - and most of IBM costs they can control are people. So that goes first. This will continue happening. This is not a surprise. This isn't even related to Covid, as it was planned before Covid.
Nothing is going to change until Ginni leaves the board at the end of 2020. She still runs the company as the Puppetmaster
I would say this could be the first bold move by AK and it’s gonna backfire when customers don’t get the services they paid for. Not saying it will be undone but core functions were gutted. Right?