Bonum Certa Men Certa

IBM Absorbs More of Red Hat and There Are Several Layoff Rumours

posted by Roy Schestowitz on Mar 06, 2025

Yesterday: Rumour About Red Hat Layoffs Yesterday

Another day has passed and people talk about today as if something big is about to happen:

IBM - March 6 Layoffs

Another new thread, posted 7 hours ago, speaks of April 1st:

Kind of hard to hear the CEO defend poor quality vs speed during the CEO hour. Equated Netflex speed to acquire new customers vs doing a quality job. Hint, IBM has low backlog and with federal government layoffs many federal contracts have gone away. Coupled with the new employee bonus structure forcing 30% to be rated low so the top 15% can get double the bonus and salary increase money is also telling.

Those are just rumours for now. But many such rumours are based on words heard through the grapevine and are later proven to be true.

Well, rumours or not rumours, that's the gossip at this time.

Western media hardly mentioned IBM laying off almost 2,000 people this past Friday [1, 2]. As if that never happened...

Can the following new report help explain redundancies at Red Hat?

IBM to combine key division with Red Hat unit

STORY HIGHLIGHTS

- IBM combines Red Hat middleware teams with its Data Security unit. - No job cuts planned as teams merge to fortify product roadmaps. - Transition aims to unify Java ecosystem strategy for customers.

Six years after IBM closed on Red Hat with a promise that the Raleigh-based software company would retain its identity, a key team is being moved under the Big Blue umbrella.

IBM (NYSE: IBM) says the Red Hat middleware engineering and product teams will join the IBM Data Security, IAM, and Runtimes organization, forming a single team. The move, expected to be complete in May, is billed as a “unified product strategy for the future of Java applications and Integration solutions in the era of cloud and AI.”

Sarwar Raza, vice president and general manager of the middleware business at Red Hat, will lead the combined product and engineering teams. He said there are no plans for job cuts related to the merger — not at Red Hat, headquartered in Downtown Raleigh, and not at IBM, which has its largest campus in Research Triangle Park.

The word layoffs is mentioned there. Last year IBM had many layoffs in that area, which is also Red Hat's epicentre.

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