Bonum Certa Men Certa

IBM Layoffs in "Co-location Mandate" Clothing

posted by Roy Schestowitz on Jan 27, 2025

Chinese Bush Clover Wildflowers

What are co-location mandates?

A 'variant' of RTO, as noted earlier today. Hours later someone posted this about co-location mandates:

 It's not a matter of which orgs, it's when. It's rolling thunder and all orgs at IBM will soon be affected with this co-location mandate. Best to prepare to either move or be laid off. Whichever hits first, or worse, you move then you are laid off. Ugh. Good luck everyone.

IBM's management very well understands (upfront even) that many people are unable to do this and would therefore resign without departure benefits. Others would interpret the mandate in the same way PIPs are interpreted - a sign that it's time to go and IBM is just signalling this. Way to 'shed off' workers... way to hide the crisis... lowballing the layoffs.

It's possible that later this week, around the time of the so-called 'results', many layoffs would be announced (but only counting those who could not be driven out 'on their own'). As somebody put it 2 hours ago, IBM's CEO "AK and the exec management team learned long ago that there is only one kind of surprise allowed on Wall Street, and that’s a surprise to the up side. Given that IBM guides very conservatively, 4th q earnings should be a wash. Nothing growing like mad to move the needle, but nothing shrinking like mad to move the needle. IBM will make their numbers and possibly exceed by a penny or two. The real elephant in the room will be flat growth. Legacy within IBM continues to shrink at just about the same speed as innovation within IBM. NET NET = flat growth, and the only way IBM can move the needle is shrink costs. IBM has been doing this via offshoring of labor for the last 10 years, but if they are finally down to the SVP and VP level, we are at the end of the line for cost take out within the first world economies. What’s left for AK to do? Most likely watch for the sell off or partner off of the low end crown jewels (eg TSS, low end power, and cloud)" (by Anonymous).

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