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Rumour has it that IBM are to layoff 23% of staff

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Rumour has it that IBM are to layoff 23% of staff

Unread postby dolanbaker » Mon 26 Jan 2015, 13:26:46

Rumour has it that IBM are to layoff 26% of staff, that's nearly 110,000 people.


IBM is reportedly planning its largest corporate layoff ever - cutting 111,800 of its staff.
A report by a respected Silicon Valley journalist for Forbes said around 26% of the company's 430,000-strong workforce would be cut this week.
The previous largest corporate redundancy was also carried out by IBM, when it cut 60,000 staff in 1993.

The company's reorganisation is codenamed Project Chrome, and most of the staff being laid off are in the US.

It will pave the way for IBM to focus on cloud computing, it is claimed, rather than its traditional hardware business.

Reporter Robert X Cringely wrote: "To fix its business problems and speed up its 'transformation', next week about 26% of IBM's employees will be getting phone calls from their managers.

"A few hours later a package will appear on their doorsteps with all the paperwork."

However, some technology commentators have said they are sceptical about the size of the reported cuts.


http://www.scoopnest.com/out/?url=http://t.co/wWXFX3rYOD&id=559714544583737344
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Re: Rumour has it that IBM are to layoff 23% of staff

Unread postby Tanada » Mon 26 Jan 2015, 13:43:59

I wonder how dropping 100,000+ people onto the Unemployment roles is going to effect Wall Street and Politics in the USA? If this happens in the manner projected it is going to be quite a blow to California employment numbers and hence the tax income of the state.
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Re: Rumour has it that IBM are to layoff 23% of staff

Unread postby GHung » Mon 26 Jan 2015, 13:57:10

Yeah, I saw a mention of this a couple of days ago on ITWorld:

http://www.itworld.com/article/2875112/ ... yoffs.html

Been in the rumor mill for a while. Most are blaming bad management; seems epidemic these days. On top of tens-of-thousands of layoffs in the energy sector pipe, one wonders how the PTB will spin it this time. Temporary setback? 'Economy adapting to a new reality?' At least most IBMers will be getting severence payoffs (that's the rumor anyway). Glad I'm not in IT anymore.

I'm wondering what other little surprises 2015 holds.
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Re: Rumour has it that IBM are to layoff 23% of staff

Unread postby Lore » Mon 26 Jan 2015, 14:42:59

It's called creative destruction.
The things that will destroy America are prosperity-at-any-price, peace-at-any-price, safety-first instead of duty-first, the love of soft living, and the get-rich-quick theory of life.
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Re: Rumour has it that IBM are to layoff 23% of staff

Unread postby Pops » Mon 26 Jan 2015, 15:31:59

Lore wrote:It's called creative destruction.

Can't be, capitalism means more, more, more!

lol, sorry
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Re: Rumour has it that IBM are to layoff 23% of staff

Unread postby dinopello » Mon 26 Jan 2015, 15:35:32

Tanada wrote:I wonder how dropping 100,000+ people onto the Unemployment roles is going to effect Wall Street and Politics in the USA?


For a while, it caused IBM stock to shoot up at the opening. IBM disputes the magnitude today and the stock came down again. Wall street generally likes layoffs under many circumstances (not all) but politics is a whole other thing.
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Re: Rumour has it that IBM are to layoff 23% of staff

Unread postby dinopello » Mon 26 Jan 2015, 15:55:18

pstarr wrote:Who cares. I remember when IBM built 360's. (Cobol anyone?) IBM invented sql and the market for pc's. Now they do what? I forget or maybe I can't spell all the value-added marketing hype. :razz:


AI, Cybersecurity, Big Data - enough hype for ya ?
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Re: Rumour has it that IBM are to layoff 23% of staff

Unread postby copious.abundance » Mon 26 Jan 2015, 16:38:02

Stuff for doomers to contemplate:
http://peakoil.com/forums/post1190117.html#p1190117
http://peakoil.com/forums/post1193930.html#p1193930
http://peakoil.com/forums/post1206767.html#p1206767
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Re: Rumour has it that IBM are to layoff 23% of staff

Unread postby dolanbaker » Mon 26 Jan 2015, 16:48:49

lower than 110,000, but by how much?
Last week, Chief Financial Officer Martin Schroeter told investors on IBM’s fourth-quarter earnings conference call that the company was taking restructuring charges of around $580m (£384m), but he did not specify the number of jobs affected.

“We are not going to replicate the same level of restructuring that we had last year,” Schroeter said in response to a Wall Street analyst’s question. “It will be a lower amount.”
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Re: Rumour has it that IBM are to layoff 23% of staff

Unread postby beam_me_up » Mon 26 Jan 2015, 19:19:01

dolanbaker wrote:lower than 110,000, but by how much?
Last week, Chief Financial Officer Martin Schroeter told investors on IBM’s fourth-quarter earnings conference call that the company was taking restructuring charges of around $580m (£384m), but he did not specify the number of jobs affected.

“We are not going to replicate the same level of restructuring that we had last year,” Schroeter said in response to a Wall Street analyst’s question. “It will be a lower amount.”


If you SWAG $50K severance per employee, that's 11,600 employees to be RIF'ed.
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Re: Rumour has it that IBM are to layoff 23% of staff

Unread postby Lore » Mon 26 Jan 2015, 20:23:17

Not to worry. All those jobs will be replaced by the long term KXL employment.
The things that will destroy America are prosperity-at-any-price, peace-at-any-price, safety-first instead of duty-first, the love of soft living, and the get-rich-quick theory of life.
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Re: Rumour has it that IBM are to layoff 23% of staff

Unread postby SILENTTODD » Tue 27 Jan 2015, 00:17:55

IBM? They're still around?
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Re: Rumour has it that IBM are to layoff 23% of staff

Unread postby evilgenius » Tue 27 Jan 2015, 00:57:42

The cloud? We really ought to clarify what that means. IBM has been fighting what can be done with open source(PHP anyone) for some time, and still managing to come out profitably. I suppose the next question to ask, beyond if this is true(which is doesn't have to be for the next question to get asked) is who is going to win between Oracle and SAP? Oracle has been very open source friendly. They've built many useful tools for developers and own MySQL. They are, therefore, a presence on over half the web, even if they aren't banking too much from that. If Oracle's strategy is attrition, then it may be a good one. For a long time now IBM has not been relevant to your average developer. They haven't got any low, but steady, income earners, like MySQL for commercial applications, out there. I think they are strictly big company in terms of their marketing targets. I wouldn't buy their stock unless I heard of a change in plans concerning that kind of plan, considering their lack of open source integration and involvement.
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Re: Rumour has it that IBM are to layoff 23% of staff

Unread postby PeakOiler » Tue 27 Jan 2015, 06:55:34

IBM 'flatly denies' report of 100,000 layoffs


Calling it "ridiculous" and "baseless," IBM on Monday dismissed a report that said the technology giant plans to lay off 1 in 4 of its workers, or 100,000 people.

The company "flatly denies" the Forbes report, IBM spokesman Ian Colley said in a phone interview. IBM previously has announced layoffs affecting "several thousand people," only "a small fraction" of the number predicted last week by a blogger on Forbes.com, IBM said in a statement.


http://www.usatoday.com/story/tech/2015/01/26/ibm-denies-massive-layoffs/22381395/

At least not yet...
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Re: Rumour has it that IBM are to layoff 23% of staff

Unread postby Simon_R » Tue 27 Jan 2015, 09:36:19

The cloud? We really ought to clarify what that means


Putting your data on a server managed by someone you dont know, in a place you dont know.

What could possibly go wrong
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Re: Rumour has it that IBM are to layoff 23% of staff

Unread postby dinopello » Tue 27 Jan 2015, 11:27:23

Simon_R wrote:
The cloud? We really ought to clarify what that means


Putting your data on a server managed by someone you dont know, in a place you dont know.

What could possibly go wrong


Just curious how old you are ? Because I feel the same way (I'm 48) but most of the younger people I know seem to have a different attitude or at least don't think about "where" their data is.
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Re: Rumour has it that IBM are to layoff 23% of staff

Unread postby ROCKMAN » Tue 27 Jan 2015, 12:32:18

dino - I'm 63 and thus older and even less trusting. I don't store any critical data on any computer long term let alone in a cloud. That's why Dog created portable hard drives. Hack my computer and all you might get is my list of favorite porn sites. LOL.
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Re: Rumour has it that IBM are to layoff 23% of staff

Unread postby sjn » Tue 27 Jan 2015, 12:47:44

dinopello wrote:
Simon_R wrote:
The cloud? We really ought to clarify what that means


Putting your data on a server managed by someone you dont know, in a place you dont know.

What could possibly go wrong


Just curious how old you are ? Because I feel the same way (I'm 48) but most of the younger people I know seem to have a different attitude or at least don't think about "where" their data is.

Don't think at all would be closer to the mark. Most of those entering the IT field in the last 10 years have been brought up with Windows point and click, then and more recently iPhone user jails, and Facebook. This generation, including most professional coders are completely clueless about what actually happens at lower levels of the stack, so whether it's cloud-based or on a managed mainframe makes no difference. Users of course are generally even more clueless.
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Re: Rumour has it that IBM are to layoff 23% of staff

Unread postby evilgenius » Tue 27 Jan 2015, 13:12:01

dinopello wrote:
Simon_R wrote:
The cloud? We really ought to clarify what that means


Putting your data on a server managed by someone you dont know, in a place you dont know.

What could possibly go wrong


Just curious how old you are ? Because I feel the same way (I'm 48) but most of the younger people I know seem to have a different attitude or at least don't think about "where" their data is.


Gosh, I'm glad you guys cottoned onto my question. I asked it open endedly because it touches on a lot of things, one of which is this thing about being concerned about where your data actually is. There are other things as well.

I can use an example to illustrate one, one which doesn't have to do with theft, but access. Some people I know started up a business. It's a type of up-scale fast food. Anyway, their register system is 'cloudy', so all of their accounting is done online. That hasn't been a problem for them. What has been a problem is that the they can't find a connection fast enough for the system to run on and not slow to a crawl. When the place is really busy they are slowed by the glitchy system, which is slowed by not having a fast enough connection. It is certainly possible to write software that would work much better with what many consider a standard connection speed. It is, but where is it?

IBM has always been about intranet, or mainframe, or more local storage of data. As such, to go cloudy is a big venture for them. I mentioned open source because going cloudy these days almost always means some kind of integration of open source. Most of what's going on is somebody's forking of what was an open source project used in their proprietary way in order to do things for their customers. In terms of the cloud this has heretofore mostly been in what is called server virtualization. Going forward that's looking passe and will be replaced by something called Docker. I'm not certain that IBM is at the forefront of either of these. To compete it doesn't mean they have to be, but they do have to show an understanding of them. The challenges, as we've seen, are not all about security.

To compete they can make their systems easier to use, providing a better and more readily approachable interface. Oracle has been trying to do that for years. They've made great strides, but their stuff is still too complicated to adapt it to a MySQL database, instead of the flagship Oracle database, and throw at your average small business owner and expect them to sort it out and produce something that will work over the net. IBM could also address the kinds of problems the people I know are having, by making a smaller information packet footprint more secure over the net. It doesn't appear however that anybody is too concerned with how oldies like us feel about our data being somewhere other than on our own hard drive.

I don't like the big analytic approach that IBM does seem to be going for. They've proven that Watson has all kinds of applications this way. Watson learns, so it can be used in a lot of places. The trouble is that people tend to act differently when they face uncertain expectations. People who don't know what the rules are tend to make up much tougher and stricter rules, especially for behavior. We invent prudishness when it isn't necessary. Watson only reinforces that. I don't like it, but I don't seem to count.
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