IBM Layoffs: It's Not Over Yet (Possibly 8,000 People Affected)

posted by Roy Schestowitz on Sep 21, 2024

How many thousands got laid off secretly?

THIS month we sort of broke the story about IBM layoffs, starting with "soft" rumours and later more substantiated rumours. "Scouting" the insiders sort of 'paid off'. Not in a monetary sense of course; we don't make money, we lose money.

Then it actually happened (after managers had been briefed and trained on how to "communicate" the news to affected staff, including the dubious NDAs). We were first to mention - as a news site - this news happening. Then came The Register, but only after watching what we were publishing, and after that some news sites accepted it was actually happening, with IDG saying 8,000 workers were likely disposed of. Some say it's not over (yet) but work in progress:

This one article speaks of the company choosing to "suspend or slow hiring for about 26,000 non-customer-facing back-office roles—which amounted to roughly 10 percent of the company’s total workforce" (it's larger than Microsoft).

Here's more press coverage, all of it from the past 24 hours or so:

• IBM’s global layoffs begin. Here’s how many will be cut in the Bay Area

  IBM has initiated significant layoffs affecting thousands of employees globally, including many in the Bay Area.

• IBM Layoffs Reportedly Impacting Thousands of Workers

  We were able to obtain Worker Adjustment and Retraining Notification (WARN) notices with the California Employment Development Department, which say 112 of the layoffs are occurring in California, including 58 workers in San Francisco and 54 in San Jose.

• Quiet Layoffs: Thousands Affected as Cloud Division Faces Cuts

• IBM Quietly Cuts Thousands of Jobs; Employees Report Signing NDAs to Keep Cuts Under Wraps

  IBM is reportedly conducting a large-scale layoff this week, with thousands of employees being impacted, primarily in the IBM Cloud division. According to multiple insiders and a report from The Register, the company is trying to keep the situation under wraps, with workers being required to sign non-disclosure agreements (NDAs). “Unlike traditional layoffs, this one was done in secret,” said one affected employee. “My manager told me that they were required to sign an NDA not to talk about the specifics.”

• [As above] IBM Starts New Round Of Layoffs

  Last year, IBM CEO Arvind Krishna said he planned to suspend or slow hiring for about 26,000 non-customer-facing back-office roles—which amounted to roughly 10 percent of the company’s total workforce—that AI and automation can do instead of people.

  Krishna said he “could easily see” 30 percent of those roles—roughly 8,000 employees—replaced by AI and automation over the five years.

• IBM Layoffs: Tech Firm Silently Fires Thousands Of Employees, Says Report

• Layoffs by IBM! Fired employees forced to sign THIS document? What insider revealed

• IBM reportedly cutting jobs and trying to keep it ...

• Massive layoffs for Cisco and IBM erase hundreds of Bay Area tech jobs

• IBM Layoffs: Tech Giant Silently Lays Off Around 1,000 Employees Amid Plan To Adopt AI, Make Them Sign NDA To Not Talk Specifics, Says Report

There's a pattern there. The media seems to be giving belated spanking to IBM.

Mass layoffs? Bad enough.

Was this necessary? Probably not, but mind the long-term debt.

This is about shareholders, not about workers, technology, quality of service etc.

Sending the roles to lesser-paid staff abroad? Bad. Also unwise. It worsens the company's performance after "the next quarter" (which is all the CEO aims for at the moment). A company's ability to attract and also retain talent is what makes or breaks it. In the long run.

Hiding the layoffs? With dubious NDAs? How will remaining IBM staff - and even customers - ever trust a word the company tells them? What else is the company hiding from them?

Not filing WARN notices? Will those politicians in NYC be impressed by ludicrous IBM leases and maintain tax evasion "gentlemen's agreements" when IBM runs afoul of Federal laws?

That's a hard one.

What is the future of IBM? Same as Microsoft? Patent parasite and a Ponzi scheme tied to a Big Lie ("hey hi", i.e. endless losses)? Red Hat too will be affected.

This is very relevant to GNU/Linux, and not only due to Red Hat. Remember that in the wake of Alice (SCOTUS, 2014 decision) and 35 U.S.C. § 101 IBM consistently lobbied the U.S. Patent and Trademark Office (USPTO) and the U.S. government to maintain software patents and even make them 'great again'. In other words, IBM lobbied against all software developers, not just Free software hackers.

IBM is not much of an ally, hardly more than Novell was after 2006. █