Artist formerly known as Indian Business Machines pledges $150B for US ops, R&D
- Reference: 1745860985
- News link: https://www.theregister.co.uk/2025/04/28/ibm/
- Source link:
That's right folks, the tech giant also known as Big Blue – a phrase that might also encapsulate the feelings of, say, a laid off American IBM employee - has clambered onto US President Donald Trump's bandwagon, following years of hard work by executives to move jobs to lower cost locations.
Apple promises to spend $500B, hire 20K over 4 years to swerve Trump import tariffs [1]READ MORE
"Technology doesn't just build the future — it defines it," said Arvind Krishna, IBM chairman, president and chief executive officer in a statement.
In its announcement, IBM said it intends to spend $30 billion on R&D over the next five years - an average of $6 billion a year - as part of "plans to invest $150 billion in America over the next five years to fuel the economy and to accelerate its role as the global leader in computing."
By way of comparison, the tech giant spent and $7.48 billion on R&D last year, and $6.78 billion the year prior, according to the IT giant's 2024 [2]annual report [PDF].
[3]
Krishna added: "We have been focused on American jobs and manufacturing since our founding 114 years ago, and with this investment and manufacturing commitment we are ensuring that IBM remains the epicenter of the world's most advanced computing and AI capabilities."
[4]
[5]
Focused perhaps, but maybe not in the way Americans wanted IBM to be.
Speaking of India... It's [6]whispered Apple hopes to make most of its US-sold iPhones in India, rather than China, by the end of 2026 to avoid whatever the [7]tariff situation is by then.
Back in 2017, The Register revealed that 122,000 of IBM’s labor base was employed in the corporation's operations in [8]India and Bangladesh . This was revealed via an internal leak of a memo from TJ Shembekar, IBM CIO director for Global HR.
Across the West, IBM has repeatedly reduced employee numbers in the intervening years, and most recently, last month [9]pushed through more layoffs in the US, with many of the roles heading to India. We previously coined the term Indian Business Machines, such were the vast numbers of staff based in IBM's subsidiaries in the country.
The average pay of an IBM employee was [10]$48,582 ; this compared to [11]$73,283 for Dell and [12]$66,886 [PDF] for HPE. Krishna himself was awarded a total compensation package north of $25 million.
[13]
IBM is on the hunt to make [14]$3.5 billion in productivity savings in 2025, the same as it made last year. Carving into its wage bill is seen as a good way to contribute to this. It has certainly helped bolster the bottom line.
[15]IBM dragged down by DOGE contract cancellation roulette
[16]IBM orders US sales to locate near customers or offices
[17]IBM shareholders asked to back greater lobbying transparency
[18]Musk's DOGE muzzled on X over tape storage baloney
Now IBM wants to be seen to be doing its bit to keep the man in the Oval Office happy. As one of the top 20 consultancies in the US that are being [19]scrutinized by DOGE , a bit of positive PR might not hurt.
As IBM said today, it is responsible for innovations that "include the data processing systems that enabled the US social security system, the Apollo Program that put a man on the moon, and power businesses in every industry."
It also classified itself as "one of the nation's largest technology employers."
However the corporation refused to answer our questions in 2017, saying "We don't break out employee numbers by country." We have asked again and will update this story if we get a response. ®
Get our [20]Tech Resources
[1] https://www.theregister.com/2025/02/24/apple_us_manufacturing/
[2] https://www.ibm.com/downloads/documents/us-en/1227c12d3a38b173
[3] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2aBFL8-vH73AXWV_L7pVyCAAAAQ8&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[4] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44aBFL8-vH73AXWV_L7pVyCAAAAQ8&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[5] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33aBFL8-vH73AXWV_L7pVyCAAAAQ8&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[6] https://www.reuters.com/world/china/apple-aims-source-all-us-iphones-india-pivot-away-china-ft-reports-2025-04-25/
[7] https://www.theregister.com/2025/04/23/us_china_tariff_reduction_plan/
[8] https://www.theregister.com/2017/03/31/one_third_ibm_staff_in_india_bangladesh/
[9] https://www.theregister.com/2025/03/27/ibm_cuts_jobs_in_us/
[10] https://www.theregister.com/2025/03/14/ibm_arvind_kerching_pay/
[11] https://investors.delltechnologies.com/static-files/2f419656-dd2c-4d07-b9de-8ffe0081eb2f
[12] https://investors.hpe.com/~/media/Files/H/HP-Enterprise-IR/documents/proxy-statement-2025.pdf
[13] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44aBFL8-vH73AXWV_L7pVyCAAAAQ8&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[14] https://www.theregister.com/2025/01/30/ibm_q4_2024/
[15] https://www.theregister.com/2025/04/23/ibm_q1_2025_doge/
[16] https://www.theregister.com/2025/04/18/ibm_orders_us_sales_staff/
[17] https://www.theregister.com/2025/04/11/ibm_shareholders_asked_to_back/
[18] https://www.theregister.com/2025/04/08/doge_tape_storage_diss/
[19] https://www.theregister.com/2025/04/23/ibm_q1_2025_doge/
[20] https://whitepapers.theregister.com/
I've Been Mean
Let me guess, it's $150000000000 over a long enough period of time that they can change plans before the first $1 is spent?
Re: I've Been Mean
Stopping fucking US jobs to India would probably cost them a whole lot less than USD$150bn
Re: I've Been Mean
Like Foxconn in Wisconsin??
During Trump 1.0.
Re: I've Been Mean
Yep: pander to the Morons, then keep doing Business as Usual. Watch my face, not my hands.
Spend 'in' , meaning, it'll be a US based IBM receiving k $ from IBM to spend in outsourcing.
Technically the dollars are 'spent' in US.
Just like the US mainstay of manufacturing uses (or used) lower level components from abroad, but then is Made in X still something that has value?
You tell me! Nowadays I can't find a single HPC that doesn't say "Made in Taiwan"
$150Bn in share buybacks.
The shares trade in the USA so we are buying American stocks, so that's an investment in the USA
What do they actually do now?
Social Security System and Apollo Moon Landings, sure, but they were like 60-70 years ago.
Anything more recent than that?
Pretty sure they made crappy computers in the '80s. Don't think they've done anything since.
The '90s Thinkpad was an ok laptop. It's docking station was a piece of crap that failed to connect to the (IBM Token Ring) network more often than it succeeded.
The AS/400 was a perfectly reasonable mini-computer.
The pSeries UNIX kit was nice as an alternative to the other vendor UNIXes (back when that was a thing).
Even the xSeries (x86) servers weren't too bad (but HP was better IMHO).
Their services business, despite employing some sincere individuals, was God-awful.
So a sort of "Meh" for the 80s, 90s and early 2000s from me.
Their services business, despite employing some sincere individuals, was God-awful.
As one of those service business types we were NOT allowed to anything else but God-awful. Them were the rules!
> Anything more recent than that?
Ask Watson?
because someone has to have a use for it... they have been trying to find it for circa 30 yrs
A bit longer before that, they "helped" [1]organize nazi concentration camps .
[1] https://en.wikipedia.org/wiki/IBM_and_the_Holocaust
I will see your $150 billion...
and raise you $150 billion. Yes, I pledge $300 billion! Starting over the next 10 years.
You forgot the important bit
I will absolutely invest $300 billion but I need $100 million in seed capital to help build the bigly huge factory in Louisiana.
I'll bet this is like Apple's $500 billion announcement
Just announcing existing investments they'd already planned. Apple announced $430 billion after Biden took office in 2021 and $350 billion in 2017 when Trump's first term started. Cook knows how to placate Trump without it affecting how he operates the company.
Re: I'll bet this is like Apple's $500 billion announcement
No, for the article its announcement of a reduction in US-based R&D spend…
All these corporations are stalling waiting for another Thomas Crook to MAGA
VIRGINIA ROMETTY ex CEO
VIRGINIA ROMETTY ex CEO
Virginia M. Rometty.
The only person at IBM over the age of 50 that actually reached the retirement age without getting laid off.
...
Re: VIRGINIA ROMETTY ex CEO
I made it to 57 before they laid me off (i retired at that point)
Was a Global Lead Consultant of a real hands on group (not power point jockeys) that did work that no one else could (within or outside of IBM...in the Unix/Linux space).
Basically I was the next on the list (spreadsheet sorted by salary by age over 50... select top 10%) ***
Of course this highly complex spreadsheet never took into account what the group brought in... millions per year per consultant.
So after a year this highly specialized woldwide group was gone (cause everyone else in the group left)...and all that revenue lost.
But hey.... I was gone from the spreadsheet!!.
Bluck
**** also probably considered was the groups skill set wasnt in any of the new initiatives that were so highly prized (shit like blockchain)
Look Ma...
.... another lying mother fucker.
Big Blue can blow me.
Re: Look Ma...
Can you name a company of equal size that doesn't lie ?
Math ain't matching for me
"In its announcement, IBM said it intends to spend $30 billion on R&D over the next five years - an average of $6 billion a year"
"By way of comparison, the tech giant spent and $7.48 billion on R&D last year, and $6.78 billion the year prior, according to the IT giant's 2024 annual report [PDF]."
Am I reading that correctly? Their big Investment push would be less money than previous years?
Re: Math ain't matching for me
Probably relying on the fact that the Orange Felon hasn't got the attention span to read beyond the "$30 billion" - not even as far as "over 5 years"..
Make Arithmetic Great Again
Shambling zombie corpse
So the most recent great innovation the PR department can name is Apollo?
That's not a good look.
Re: Shambling zombie corpse
They did some big data work for governments in the early 40s but don't want to talk about it.
IBM is moving its stuff to India because its facing over TEN THOUSAND discrimination lawsuits.
For firing people due to age AND if they're non-white or LGBTQ.
Literally emails from high-ups saying "I didn't know XYZ was an [n-word]. fire them now"
They're going to be on the hook for multiple 10s of billions over these US lawsuits, and are trying to escape to another country basically but hoping to keep the US sales alive.
This post contains some characters we can't support
> Krishna added: "We have been focused on American jobs and manufacturing since our founding 114 years ago, and with this investment and manufacturing commitment we are ensuring that IBM remains the epicenter of the world's most advanced computing and AI capabilities."
Careful Krishna, you might take someone's eye out. [Pinnochio emoji not allowed]
"... following years of hard work by executives to move jobs to lower cost locations."
While literally true, *decades* is also true and likely more impactful to many including myself.