Thread regarding IBM layoffs

This is all about cost reduction

It’s not workforce reduction, it’s cost reduction. IBM is focused on costs and has forgotten about innovation and relationships. If you don’t have something innovative to sell, you need to focus on relationships to tide you over the innovative drought. When you have decimated your field force, what’s left. Cost reduction. It’s a death spiral that ends badly unless you can break out of the spiral. IBM is trying to break the spiral with The Redhat purchase. It’s not a bad strategy, BUT manufacturing and low margin services will be thrown to the wolves, because rule number one is it’s all about costs right now. REMEMBER IBM managers manage to how they get paid, not to what the company needs. What’s rule number one? Cost reduction. How will IBM managers respond. Cut costs at the expense of innovation and relationship

Originally posted by @Yo6WNv5-jmj.

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| 1235 views | | 4 replies (last April 7, 2019) | Reply
Post ID: @OP+YpbzARC

4 replies (most recent on top)

We ain't seen nothing yet. Cost reduction will go into overdrive one year after the RHT acquisition, when IBM finally realizes it is not the right growth strategy.

RHT to IBM is Autonomy to HP, except much worse.

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Post ID: @3dbs+YpbzARC

At IBM there is no difference between workforce reduction and cost reduction because the workforce is seen as nothing more than a cost.

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Post ID: @3iil+YpbzARC

Good post. For growth to happen many things will have to change, I am not seeing major changes anywhere

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Post ID: @3qtt+YpbzARC

When you can't grow revenue anymore, the only way you maintain or increase profit is by cutting costs... this is IBM these days. Expect this to continue until someone at IBM find a way to increase the top line.

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Post ID: @hlv+YpbzARC

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