Conservative Estimate: Over 10,000 IBM Workers to Be Laid Off in the Next Two Waves

posted by Roy Schestowitz on Feb 11, 2025

Fishing for information about IBM layoffs is hard. That's because the media is dealing with "flooded zones" (lots of media distraction and noise) instead of investigating what matters and doesn't boil down to some "tweets" or equivalents.

Looking around the site thelayoff.com for clues, knowing many IBM insiders post there, we gather far more information than the corporate press cares to provide. Some is rumours, sure, but many of these turn out to be true.

There were many posts there today and further to this morning's outline here's a summary of some of the better ones. It is abundantly clear some of these are IBM insiders or former workers with connections inside the company.

Some of the comments may seem prejudiced, as there is this common sentiment that IBM is moving to India and its CEO represents this vision. One commenter named a likely colleague, saying: "If Consulting is to be hit, they should start with Mohammed Ali who is incompetent and incapable - he is only in his position because he is yet another Indian friend from Alvind's past."

"Alvind" is what many call the CEO, Arvind. Another new comment has just said: "If you are under paid and don't have a euro last name you have a future in India Business Machine. 90% of the projects are either outsourced back to India, given to CIC or run by visa workers in country."

This may seem racist, but many IBM workers feel this way and use even harsher language.

Here is a plausible estimate of what comes next: (based on prior RAs)

If my RA experience is still valid (it was many years ago), then the employee meetings with management will start in about 3 weeks (first week in March). You'll be given 30 days to clean up your affairs...stop attending meetings, don't answer e-mails, don't send e-mails, no conference calls, instant messaging, video meetings. Stop all participation in any projects you are working...no check outs, no check ins. You will drop off the face of the earth, and you and your now former coworkers will have no contact.

At the end of those 30 days, you will meet with an IBM manager. You'll turn in your security badge, your laptop, and anything else that belongs to the company. They'll give you a paper check, point you to the door, and tell you to have a nice day.

One person there says: "Former CIO employee in Madrid Center, fired last march 2024 along with other 10 colleagues, then other 4 people from other BU were laid off as well. In our case we were asked to go to a team meeting and after a very embarrassing situation telling some people to leave the room, we were all fired immediately, all together in the same meeting room. After some lawyer's actions, we were all given 2 years salary as compensation + unemployment payment for 2 years (1200-1400€/m). So what's legal in Spain, basically."

Those layoffs in Madrid were mentioned in another thread days or weeks ago. Some people try to gather clue on who's affected next ("200 total in our org, split over 2 quarters" and "Would you share which country/org you are in? Thx"). Some people might want to resign before the mass layoffs come to their team. Heck, maybe they can start exploring alternative employment.

The best comment we've seen today explains what scale of layoffs is to be expected this year (and when).

Will there be spring layoffs? Of course there will. IBM has already stated 2025 will be a replay of 2024, BUT IBM has upped the cost take out in 2025 by 500 million to 3.5 billion total . So what should we expect?

1. 2024 saw approx a10k NA head count reduction, so expect maybe something slightly more. 2. 2024 results showed consulting revenue down. Remember the industry mantra “as goes revenue so goes head count” so expect consulting to be impacted. There is a secondary impact here. IBM grew consulting via acquitions in 2024. Those heads were brought in to boost utilization and not to expand a shrinking revenue base. That means consulting will have a double cull, with lower utilization going out. 3. SW’s strategy of buying innovations vs developing it, means companies who have been bought more than a year ago can expect their legacy support to be moved to lower cost countries. This means SW will always be experiencing a layoff as the product portfolio ages. 4. Infrastructure has finally acknowledged that only enterprise matters as that’s where the SW that pays the rent resides. That means anything on the scaleout side of the ledger (servers, storage, cloud, and TSS), are in the target zone, and will be partnered out

NET net 10-12k worth of employees will be impacted over 2 waves One in the spring and one in the fall (eg same as 2024)

More recently someone said: "I was just told valentine's day is when the notices will start going out. wonder if they will provide the His & Hers beforehand? Consulting, if you are on the bench smooch, buh bye. No packages either. don't let the door hit ya...IBM is now nothing more than a body shop consulting outfit with some expensive talent which will be retired soon."

"The useless report writers with “partner” or “global” in their name will hunker down and be just fine," another person said.

Another thread debates what to do after IBM in case of RAs or if leaving ahead of them: (dodging the bullet?)

Don't mention IBM on your resume - call it something else. How about BBI - Big Blue Invention ? After all, this company is all about make believe and fantasy, never delivering any real positive business results. And they have BBI consulting to prove it...

Also:

Some advice from an almost senior citizen: Don't try to hide it, and don't be embarrassed about it. Everyone in the IT industry knows what's going on with IBM, and a lot of now-superstar employees in the world were once in the same boat that you are in right now.

In your next job interview, you tell the interviewer that you were at IBM because you needed the money and you thought it would be a neat place to work. But now you're looking for advancement, and the chance to work with others with fresh ideas.

Believe me when I tell you...seasoned interviewers will understand.

Among the other comments: "if you are a senior with IBM regardless of years with the company kiss your chances goodbye. Very few companies want anyone over 40 yrs old unless you can work stocking shelves."

"Reject Dinosaurs from IBM end up driving Uber or work at McDonald’s drive thru or both," someone wrote, to which one responded: "If you can get a security clearance, you might have a chance to avoid the McDonald’s job once canned."

Speaking as one who got security clearances about 13 years ago, security clearances aren't of much value. They're overhyped like some certifications that lose their validity after some period of time or are considered "outdated".

In another thread the demolition of IBM buildings was brought up: "A harbinger for the broader company as a whole. Endicott Demolition: Original 100-Year-Old IBM Logo is History -- https://wnbf.com/endicott-demolition-original-ibm-logo-history/" (I once worked in a former IBM building; those buildings are like dinosaurs from the days IBM actually mattered).

The morale is low and layoffs are expected soon, with mass layoffs likely happening next month and then again later. █