IBM just let go of the most knowledgeable, subject matter expert(s), ex-AT&T employees who were outsourced to IBM last August. Those of us still with AT&T could not believe or fathom the ex-AT&T folks IBM retained over the ones they are letting go in August. Their choices were insane and made absolutely no sense at all which begs the question; Does IBM Management have a clue in respect to their workforce strengths and weaknesses?? It is pure madness. Unfortunately, AT&T will definitely feel the effects of the loss of these wrong choice released subject matter experts leaving in August as will IBM in the long run. I can't wait until AT&T Business Partners find out their go to subject matter experts in IBM...poof, are no longer.......
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How many lambs to the slaughter to support these 2 salaries and bonuses? As well as all the Partners & Managers sitting pretty delivering this layoff message at the comfort of their own homes right now?? They didn't make sales targets, how come they still get to keep their jobs?
IBM Board Sets Pay Packages For New CEO And President
https://www.crn.com/news/cloud/ibm-board-sets-pay-packages-for-new-ceo-and-president
I am from ATT and came here to read your board after reading about your RA. The tone hear is very similar to the ATT board. Our turn is coming any day. ATT clearly documented in their 4Q earning report they will be executing on a plan to reduce employe related costs by $1.5 BILLION by EOY 2020. Like you we have these regular events, known as “surplus” within our. Last year ATT Rebadged many employees, sending them to contract firms already doing business with ATT. Those people continued doing the same job as they did while an ATT employee but were employed by the contract firm. It was a way for ATT to avoid paying a severance (2wks per year of svc). Work with the new company was guaranteed for 1 year. 9/2019 a bu ch were sent to IBM and I understand some have bee RAd. I think many expected to be let go anyway, because the 1 yr guarantee was upon the. For those that remain, they are treated as a new IBM employee and I expect their pay will change accordingly. I think when they were rebadged their pay was also guaranteed for the 1 yr.
Good luck to all. Unfortunately this is happening everywhere and in the case of ATT it was a plan put in place prior to the pandemic.
20,000 in the UNITED STATES Out of approx. 50-60K UNITED STATES EMPLOYEES
This is BIG!
This gives you another perspective on how wide spread the lay-off was
https://timesofindia.indiatimes.com/business/india-business/ibms-global-layoffs-hit-india-too/articleshow/75908501.cms
At the typical IBM burden rate of $180k average per FTE (at least when I was still at IBM), this equates to 5,000 US employees if the charge for reductions is $900M for the year. Since this is a $900M charge for the quarter, multiply that by 4 to get to 20,000 employees in 1st World Countries. You can easily do the math. I doubt the burden rate has changed much in 5 years, so it is probably a valid number.
You have to calculate total cost per resource actioned. So you have a number of objects that you want to act on, then you have average cost of that action. Then you multiply it. And then you will have a total cost. So if you multiply it with average cost of managers total sum will go up, but if you multiply it with average cost of ordinary worker total sum will be lower. So when you apply machine learning programing on these inputs its obvous that most cost effective way is to lay off workers because on same amount of money you can increase total nuber of actioned resources. You cannot defy basic economics.
The fact you have to ask and IBM is not forthcoming with details speaks volumes. Likely on the higher range.
What’s the assumption?
$45k per employee? $15k per month?
Is that salary?
Or salary + the other benefits?
The 900 million 1st Q charge breaks down to approx 20-25k of first world Employees impacted. The CFO said on the 1st q earnings call he was looking for 2 billion in savings with any additional charges being self funding. If it all comes from RA’s, that means there is another 1.1 billion charge yet to be accounted for. YES it could have already been taken in 2nd q and will be reflected in 2nd q numbers. If yes, that means closer to 50k were impacted.
With a $900M charge, worldwide it must be between 15K and 20K
About 20K
Roughly 20,000 were effected.
$900m charge was taken. Reverse engineer it.