IBM has laid off ~33,000 in three years. Here is the basic math.

At the end of 2017 (or put another way; at the start of 2018) IBM had a global workforce of ~366,000
Red Hat added (in 2019) ~13,000
At the end of 2020, (start of 2021), IBM had a global workforce of ~346,000

So, 366,000 + 13,000 = 379,000 (potential total employees) – 33,000 (reduction in workforce totals) = 346,000 (Start of 2021)

Now, IBM does lose employees to natural attrition, which usually are replaced 1/1 possibly in different areas, in order to maintain a viable business. But given IBM’s history, clearly much of the reduction is through unnatural workforce actions.

Lets keep going…..

For 2018-2020 (three years/all), the amount allocated for “workforce rebalancing” was;
~$600m (2018) +~$555m (2019) +~$2b (2020) for a total of ~$3.155b.

So given that IBM reduced it’s workforce by ~33000 for 2018-2020 with $3.155b allocated, and that IBM has allocated $3b just for 2021, we can guestimate that IBM will reduce its workforce by another 30,000 or so over the next 12 months. Then there's the the other $1b for 2022. But of course that may change. Once SpinCo is out the door, that leaves ~220k. As others have said here previously.

Depressing isn’t it

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How about IBM Security; are they under Systems? . IBM Watson, will that be bought off?

Thanks

Do not be surprised if IBM overstuffs the GTS spinoff to Newco, and let’s Newco decide how to restructure itself with a one time payment to Newco for the downsizing. Newco could then monetize the downsizing if they decide to be more stingy with their offer to leave. Given Schroeder’s background in financial engineering, I’m sure that’s in his playbook. The other piece of GTS that remains is TSS. IBM has not announced where that will land, but I could easily see that getting put into Systems, then Power and Storage getting spunoff and the remaining piece of Systems being absorbed by GBS and Cognitive. TA DA down to two divisions, and a headcount number that is far far lower.

Business as usual at IBM...

So out of the curent 220K, how many do we think are in management (ie. not billable)? 50K?

So this might be a part of their financial engineering division.

Like allocate 3B charge in 4th quarter and blame it on pandemic. They might add some of those revenues back and show it as income because 30k seems huge for a year.

Thread regarding IBM layoffs

IBM has laid off ~33,000 in three years. Here is the basic math.

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