Thread regarding IBM layoffs

Too many layers of management

There are, and have been, too many layers of mgt at IBM. Top management is too separated from the real lower-level development world. Top mgt cannot see, and does not want to see and be a part of, lower level work. This is not a new problem.

I don't think anybody can disagree with this. Perfectly put, @xky+1lXrBxXP.

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| 2778 views | | 9 replies (last April 20, 2023) | Reply
Post ID: @OP+1md6lZlb

9 replies (most recent on top)

Layoffs start at the bottom and way up step by step. This means, the higher the hierarchy, the safer. Thats is why we have such a long chain of management, they set the rules of the game.

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Post ID: @1ube+1md6lZlb

Bring back Gerstner!!!

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Post ID: @1cun+1md6lZlb

Most IBM FLM or even second-line managers are decent sorts and try to do their best. But the executive class can be insufferable. They are like the Lords and Ladies of Olde, with absolute authority. No one is allowed dissenting opinion - even when it is your job, your training - and you have solid data: "don't tell me what I don't want to know". Increasingly people are afraid to say anything contrary even when it is important.

So when you are talking cuts to management guess who gets hit? The FLM. In general most of the execs are never RA'd, esp if they are management track (MBA). (I have heard of some technical tract execs who work their butts off to get there get laid off, however rare).

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Post ID: @zio+1md6lZlb

Too many layers isn't the only problem. It's all the overlay orgs within SW/Infra/Consulting. Long chains of letter bands with few reports each and no one below B10 at the bottom. No one knows what they do but they're all over IBM. Can't keep laying off engineers, sellers, people who manage large teams, ect while ignoring this.

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Post ID: @aqi+1md6lZlb

agreed

There are way too many people being promoted to PM in security & compliance.

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Post ID: @nzm+1md6lZlb

According to the 2022 Annual Report, IBM had 288.3 thousand employees at the end of last year, focusing on "hybrid cloud and AI". Kyndryl was spun off, there have been 30+ years of RAs plus lots of site closures...what is left to cut? It wouldn't surprise me one bit to see IBM get rid of revenue-producing employees, but which divisions will get hit?

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Post ID: @olv+1md6lZlb

For IBM to be ranked in the top 10 in rev/employee in tech they need to one of two things: 1. 70%+ reduction in employees from about 260k+ (after this RA round) to 75k or 2. Increase revenue 3.3x from $60b to $200b. Having about 4800 execs is roughly $11m in rev/exec compared to google or Microsoft at about 10 times that rev/exec. All this info is available in Google searches.

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Post ID: @ojc+1md6lZlb

Meta gets it, and IBM should pay attention It’s all about efficiency

https://techcrunch.com/2023/04/18/another-round-of-mass-layoffs-expected-at-meta-this-week/

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Post ID: @ftj+1md6lZlb

Management has only ever seen one significant cut it it’s entire history at IBM. It happened under Gerstner when he chopped management from 13 reporting levels to 7. It was a significant cut, but he made a mistake in that managers were not RA’ed, but demoted. Those demoted managers over time wormed their way back into management positions, and today the reporting levels are back to 13. Until IBM figures out how to clear the management levels for efficiency IBM will remain over staffed, and suffer the consequences.

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Post ID: @uur+1md6lZlb

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