IBM is quietly axing thousands of jobs, source says
(2024/09/18)
- Reference: 1726686254
- News link: https://www.theregister.co.uk/2024/09/18/ibm_job_cuts/
- Source link:
IBM has been laying off a substantial number of employees this week and is trying to keep it quiet, our sources have said.
One IBM employee told The Register that IBM Cloud experienced "a massive layoff" in the past few days that affected thousands of people.
"Unlike traditional layoffs, this one was done in secret," the insider said. "My manager told me that they were required to sign an NDA not to talk about the specifics."
[1]
[2]Multiple [3]posts [4]on [5]layoff-focused [6]message boards and corroborating accounts with other sources familiar with the IT giant's operations suggest the cuts are large.
[7]
[8]
Asked to confirm the layoffs, an IBM spokesperson told The Register , "Early this year, IBM disclosed [9]a workforce rebalancing charge that would represent a very low single digit percentage of IBM’s global workforce, and we still expect to exit 2024 at roughly the same level of employment as we entered with."
IBM's first-quarter 2024 earnings [10]report said that the mainframe goliath took a $400 million "workforce rebalancing" charge to cover the cost of planned layoffs. That's after a $300 million "workforce rebalancing" charge in 2023. At the beginning of 2023, IBM announced plans to cut 3,900 jobs.
[11]
With about [12]288,000 employees worldwide at the end of 2023, the "very low single digit percentage" possibilities for 2024 might be 1 percent (2,880 layoffs), 2 percent (5,760 layoffs), 3 percent (8,640 layoffs), or more. Assuming a fixed cost per employee, last year's charge and job cut disclosure suggests about 5,200 positions would be eliminated with a $400 million charge.
Last year, CEO Arvind Krishna [13]said IBM expected to replace around 7,800 jobs with AI, though no specific time frame was provided. His corporation's stock price is up 33 percent year to date to $215 a share.
[14]More layoffs at Microsoft: What's really going on here?
[15]Dell says biz transformation continues. Translation: More layoffs
[16]Samsung faces strikes in India, amid reports of global layoffs
[17]Meta's mass layoff severance agreements illegal, says judge
IBM's spokesperson did not respond to a request to be more specific about the number of layoffs and to explain where new roles were being hired to maintain a flat headcount.
According to our source, the job cuts have been directed mainly at senior-level programmers, sales, and support.
This individual's job is headed to India, we're told, reflecting a hiring freeze in the US. But hiring is said to be ongoing in India.
[18]
IBM has [19]a history [20]of [21]moving [22]jobs [23]to [24]India .
As with prior layoffs, or "resource actions" to use IBM's euphemism, we're told those affected are substantially in the 50-55 age bracket with 20-24 years of seniority.
"It seems exclusively people in L7 and L8 and L9 bands, at the top of the band in payment structure," the insider said.
Despite numerous past and ongoing [25]age discrimination lawsuits , IBM maintains it does not systematically discriminate on the basis of age. ®
Get our [26]Tech Resources
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[2] https://www.thelayoff.com/t/1uy8oDkf
[3] https://www.thelayoff.com/t/1uy0Sgta
[4] https://www.thelayoff.com/t/1uytuuZ7
[5] https://www.thelayoff.com/t/1uy3E7Px
[6] https://www.thelayoff.com/t/1uz6XD8C
[7] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offprem/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44ZutNgH4CIMJCZT2--fkVBwAAAgE&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[8] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offprem/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33ZutNgH4CIMJCZT2--fkVBwAAAgE&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[9] https://www.theregister.com/2024/01/25/ibm_q4/
[10] https://newsroom.ibm.com/2024-04-24-IBM-RELEASES-FIRST-QUARTER-RESULTS
[11] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offprem/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44ZutNgH4CIMJCZT2--fkVBwAAAgE&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[12] https://www.bloomberg.com/news/articles/2024-01-24/ibm-sees-strong-2024-free-cash-flow-plans-job-cuts
[13] https://www.theregister.com/2023/05/02/ibm_ai_back_office_jobs/
[14] https://www.theregister.com/2024/06/04/microsoft_plans_to_cut_about/
[15] https://www.theregister.com/2024/09/11/dell_layoff_sec/
[16] https://www.theregister.com/2024/09/12/samsung_india_strikes/
[17] https://www.theregister.com/2024/07/22/meta_layoff_severance_agreements/
[18] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offprem/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33ZutNgH4CIMJCZT2--fkVBwAAAgE&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[19] https://www.theregister.com/2017/03/31/one_third_ibm_staff_in_india_bangladesh/
[20] https://www.theregister.com/2005/01/10/ibm_jobs_india/
[21] https://www.theregister.com/2023/01/05/ibm_redeployment_orders/
[22] https://www.theregister.com/2023/01/12/ibm_aix_developer_jobs/
[23] https://www.theregister.com/2018/03/22/ibm_age_discrimination/
[24] https://www.theregister.com/2024/01/25/ibm_q4/
[25] https://www.theregister.com/2024/06/20/ibm_and_kyndryl_again_sued/
[26] https://whitepapers.theregister.com/
One IBM employee told The Register that IBM Cloud experienced "a massive layoff" in the past few days that affected thousands of people.
"Unlike traditional layoffs, this one was done in secret," the insider said. "My manager told me that they were required to sign an NDA not to talk about the specifics."
[1]
[2]Multiple [3]posts [4]on [5]layoff-focused [6]message boards and corroborating accounts with other sources familiar with the IT giant's operations suggest the cuts are large.
[7]
[8]
Asked to confirm the layoffs, an IBM spokesperson told The Register , "Early this year, IBM disclosed [9]a workforce rebalancing charge that would represent a very low single digit percentage of IBM’s global workforce, and we still expect to exit 2024 at roughly the same level of employment as we entered with."
IBM's first-quarter 2024 earnings [10]report said that the mainframe goliath took a $400 million "workforce rebalancing" charge to cover the cost of planned layoffs. That's after a $300 million "workforce rebalancing" charge in 2023. At the beginning of 2023, IBM announced plans to cut 3,900 jobs.
[11]
With about [12]288,000 employees worldwide at the end of 2023, the "very low single digit percentage" possibilities for 2024 might be 1 percent (2,880 layoffs), 2 percent (5,760 layoffs), 3 percent (8,640 layoffs), or more. Assuming a fixed cost per employee, last year's charge and job cut disclosure suggests about 5,200 positions would be eliminated with a $400 million charge.
Last year, CEO Arvind Krishna [13]said IBM expected to replace around 7,800 jobs with AI, though no specific time frame was provided. His corporation's stock price is up 33 percent year to date to $215 a share.
[14]More layoffs at Microsoft: What's really going on here?
[15]Dell says biz transformation continues. Translation: More layoffs
[16]Samsung faces strikes in India, amid reports of global layoffs
[17]Meta's mass layoff severance agreements illegal, says judge
IBM's spokesperson did not respond to a request to be more specific about the number of layoffs and to explain where new roles were being hired to maintain a flat headcount.
According to our source, the job cuts have been directed mainly at senior-level programmers, sales, and support.
This individual's job is headed to India, we're told, reflecting a hiring freeze in the US. But hiring is said to be ongoing in India.
[18]
IBM has [19]a history [20]of [21]moving [22]jobs [23]to [24]India .
As with prior layoffs, or "resource actions" to use IBM's euphemism, we're told those affected are substantially in the 50-55 age bracket with 20-24 years of seniority.
"It seems exclusively people in L7 and L8 and L9 bands, at the top of the band in payment structure," the insider said.
Despite numerous past and ongoing [25]age discrimination lawsuits , IBM maintains it does not systematically discriminate on the basis of age. ®
Get our [26]Tech Resources
[1] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offprem/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2ZutNgH4CIMJCZT2--fkVBwAAAgE&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[2] https://www.thelayoff.com/t/1uy8oDkf
[3] https://www.thelayoff.com/t/1uy0Sgta
[4] https://www.thelayoff.com/t/1uytuuZ7
[5] https://www.thelayoff.com/t/1uy3E7Px
[6] https://www.thelayoff.com/t/1uz6XD8C
[7] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offprem/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44ZutNgH4CIMJCZT2--fkVBwAAAgE&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[8] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offprem/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33ZutNgH4CIMJCZT2--fkVBwAAAgE&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[9] https://www.theregister.com/2024/01/25/ibm_q4/
[10] https://newsroom.ibm.com/2024-04-24-IBM-RELEASES-FIRST-QUARTER-RESULTS
[11] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offprem/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44ZutNgH4CIMJCZT2--fkVBwAAAgE&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[12] https://www.bloomberg.com/news/articles/2024-01-24/ibm-sees-strong-2024-free-cash-flow-plans-job-cuts
[13] https://www.theregister.com/2023/05/02/ibm_ai_back_office_jobs/
[14] https://www.theregister.com/2024/06/04/microsoft_plans_to_cut_about/
[15] https://www.theregister.com/2024/09/11/dell_layoff_sec/
[16] https://www.theregister.com/2024/09/12/samsung_india_strikes/
[17] https://www.theregister.com/2024/07/22/meta_layoff_severance_agreements/
[18] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offprem/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33ZutNgH4CIMJCZT2--fkVBwAAAgE&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[19] https://www.theregister.com/2017/03/31/one_third_ibm_staff_in_india_bangladesh/
[20] https://www.theregister.com/2005/01/10/ibm_jobs_india/
[21] https://www.theregister.com/2023/01/05/ibm_redeployment_orders/
[22] https://www.theregister.com/2023/01/12/ibm_aix_developer_jobs/
[23] https://www.theregister.com/2018/03/22/ibm_age_discrimination/
[24] https://www.theregister.com/2024/01/25/ibm_q4/
[25] https://www.theregister.com/2024/06/20/ibm_and_kyndryl_again_sued/
[26] https://whitepapers.theregister.com/
mv $MyJob /dev/null
CapeCarl
In 2011 my job as a Solaris/Linux SysAdmin for a big Swiss Re-insurance company was outsourced to IBM/Poland...Said relocated jobs probably being long gone at this point.
on a physical note, I was stationed in Armonk, New York...On the way to work I turned right into my (former) employer's USA HQ, IF I had turned left I would have entered IBM's world HQ campus.
....And for some reason said layoff event seemed to expunge the last vestiges of my 1980's/90's role as an AIX admin.
What about the WARN notice?
Woodnag
[wiki]
The Worker Adjustment and Retraining Notification Act of 1988 (the "WARN Act") is a U.S. labor law that protects employees, their families, and communities by requiring most employers with 100 or more employees to provide notification 60 calendar days in advance of planned closings and mass layoffs of employees.
Do you want your business-critical software written by a rotating cast of “freshers”? Neither do I.