back to article Axe to fall on staff at IBM's Global Technology Services 'this Friday'

IBM is planning to lay off workers in its Global Technology Services (GTS) wing this coming Friday, according to insiders. Global Technology Services, which builds networking infrastructure and provides high-availability systems among other things, is part of the IT titan's Global Services division, which employs about 190,000 …

  1. Lysenko

    a resource action will happen this Friday

    WTF is a "resource action" and what is a member of an employee organisation doing babbling like a retarded Catbert?

    If they are terminating the employment of staff en masse then that is "Redundancy". It has a legal definition (in the UK at least) and you can't weasel out of it by using nouveau terminology dreamed up by a "differently abled" Personnel Manager (pronouncing HR just sounds like phlegm).

    1. Grikath

      Re: a resource action will happen this Friday

      Was mulling that one over as well.. Catches the eye, doesnt'it?

      Just goes to show how "our valued and varied enablers" are truly seen by Human Resources..

    2. Anonymous Coward
      Anonymous Coward

      Re: a resource action will happen this Friday

      It's internal IBM speak for headcount reduction.

      And no, nobody in IBM thinks that it magically waives legal obligations either in the US or the UK. Why would you imagine that any competent HR person would think differently?

      In a similar vein, "Price action" is IBM speak for price rise. It's just jargon.

    3. Anonymous Coward
      Anonymous Coward

      Re: a resource action will happen this Friday

      Yep it's exactly as you'd think. Lay offs under another name. IBMers have become so thoroughly familiar with the term over the past couple of years that it's universally understood. "Where's Chris, is he still leading this project?" - "No he got RA'd".

      If you're a customer with a sharp commercial governance team and SLA's that actually monitor the quality of delivery, you'll be fine. Otherwise....

    4. a_yank_lurker

      Re: a resource action will happen this Friday

      @Lysenko - It sounds like buzzword bingo for layoffs (US term). They probably are trying to sugar-coat the fact they need to layoff some people due the PHBs running the show being clueless. I respect a manager who comes to the most affected site and personally announces the action to the affected staff and actually takes some questions. But I doubt I've Been Moved so to be Very Small Blue will do that.

    5. Anonymous Coward
      Anonymous Coward

      Ah, the joys of corporate-speak...

      "Resource action" sounds so much more warm and cuddly than "redundancies" or "layoffs" doesn't it?

      Sadly this is all to common amongst big corporates; they seem terrified of communicating using anything other than "positive" language. I have received numerous emails announcing (yet more) redundancies which do not contain one negative word and certainly do not contain the "R" word.

      HP uses the phrase "Work Force Management" (WFM)...

      Sad for the IBM people about to lose their jobs.

    6. Anonymous Coward
      Anonymous Coward

      Re: a resource action will happen this Friday

      It's know within IBM as "Resource Action" - and when I was there, they had an application to help manage them named just that.

    7. Uncle Ron

      Re: a resource action will happen this Friday

      IBM in the US has referred to mass firings of employees as "resource actions" for decades. They don't call them layoffs because that word implies that those laid off might return to service as some later date. Of course that won't happen. They don't call them firings as that word is harsh, just as they don't call it dumping dead weight.

      They don't call it redundancy in the US because that word infers that the jobs of those released were either not needed or duplicated by other employees. Neither of which is ever true. No, these employees are being shed because the expectations--demands--of stockholders cannot be met without dumping something. Common employees are the easiest thing to dump. IBM has gone -far- beyond shedding fat and has gotten deep into muscle and is sawing away at the very bones of the company. Has been for 20 years.

      1. Anonymous Coward
        Anonymous Coward

        Re: a resource action will happen this Friday

        Entirely agree, and would add that getting rid of employees is not only the easiest but it is also cheapest and most effective way of cutting costs.

        I have an idea for IBM and the other tech giants in similar situations - instead of getting rid of people, why not produce products and services that your customers actually want and then sell more of them...

        1. Lysenko

          Re: a resource action will happen this Friday

          Thanks for the explanations everyone. I am clear about this now. They're referring to a Livestock Cull. Is scrapping an old PC a (hardware) "Resource Action"? I may even alias FreeMem as RAMem in tribute for my next IBM blade monitoring firmware ;)

      2. Michael Wojcik Silver badge

        Re: a resource action will happen this Friday

        They don't call it redundancy in the US because that word infers that the jobs of those released were either not needed or duplicated by other employees.

        Implies, not infers. (Handy rule of thumb: If you can't keep those two straight, default to imply. It's much more likely to strike you as wrong when it is.)

        I've never seen a US corporation use the term "redundancy" for laying employees off.

        And in the US, "firing" generally refers to dismissal for cause - the employee did something bad, or failed to do what was required.

    8. swschrad

      to I-bummers, "resource action" = fired

      now, if they would can the top two tiers of upper management at IBM, and bring in somebody whose sole purpose in life is not to read from the "Soviet Five Year Planning" resource workbook, but to whistle up and sell products and services, they might turn the ship onto the straight.

      away from the circling the drain thing.

  2. Anonymous Coward
    Anonymous Coward

    Again?

    Don't we do this story at this time every year? And isn't the source normally Robert "wrong as usual" Cringely?

    Can we count on El Reg for a retraction if Friday comes and goes without the mass layoffs, now that it's an all-grown-up proper journalistic source? Or will this be another example of "we said 20,000, actually it was 200, so we were right in principle"?

    1. Anonymous Coward
      Anonymous Coward

      Re: Again?

      IBM layoff around 5% of there workforce (~15,000 give or take 5000) most years at around this time to meet their numbers.

      Mr Cringley suggested they would layoff around 110,000 which is why he was laughed at.

  3. Anonymous Coward
    Anonymous Coward

    Maybe jobs moving to AT&T?

    ATT sold their customer hosting DC's to IBM

    http://www.prnewswire.com/news-releases/att-and-ibm-expand-their-strategic-relationship-in-managed-application-and-managed-hosting-services-300194887.html

    Maybe ATT are taking IBM's network people, functions and business?

    1. lady grey
      Flame

      Re: Maybe jobs moving to AT&T?

      What, so AT&T can lay them off. The deathstar has and continues to deplete the ranks of anyone who knows anything in favour of offshoring and outsourcing to the likes of big blue (they don't even deserve to be capitalised). New employees don't get pensions and they have a history of stealing pensions from personnel who were part of oursource actions in the past. No sympathy for either company.

  4. Anonymous Coward
    Anonymous Coward

    Stock manipulating by the execs again

    So, basically the execs are taking further action to try and improve the stock price again.

    Hopefully one of these days (soon) this abusive approach stops working for them.

    1. John H Woods Silver badge

      Re: Stock manipulating by the execs again

      If you're senior enough to be able to order redundancies, and you have stock in the company itself, isn't that almost insider trading? It's certainly a conflict of interest of some kind.

  5. RollTide14

    Loyalty

    I'd like for people to remember the last part of this article when they whine and complain that employees aren't "loyal" anymore. I understand that layoffs are a necessary evil but for the people who have put in decades at that company only

    To see there severance slashed from 6 months to 1 is despicable.

  6. Howard Hanek
    Coat

    15 Consecutive Quarterly Losses

    For a company hawking Global Solutions they seem to be very slow on the uptake don't they? Like a man starving to death decides he doesn't need both arms and legs some 'solutions' accelerate the process of failing and make impossible full recovery.

    1. Anonymous Coward
      Anonymous Coward

      Re: 15 Consecutive Quarterly Losses

      Yes, I am inside IBM, and things could be better, but IBM MAKES MONEY, lots of it.

      It has not had 15 Consecutive Quarterly Losses, it has had 15 Consecutive quarters of revenue decline.

      That being said most of the revenue reduction has been in lower profit margin areas.

      IBM has solid profit margins, and IMHO the market and most people in general seem to miss this.

      IBM has a lot of potential, but that is in other areas then most of the divested businesses. Anything that is a solid commodity is not where IBM wants to be.

      1. Anonymous Coward
        Anonymous Coward

        Re: 15 Consecutive Quarterly Losses

        Ah, but merely making a consistent profit is no longer sufficient, investors demand revenue growth which is something IBM and other big IT vendors are struggling with.

        It sounds crazy that companies can make billions a quarter in profit and still be considered to be "struggling" but that's the way it is.

      2. theblackhand

        Re: 15 Consecutive Quarterly Losses

        While IBM makes money, the revenue decline has been happening for quite some time (~10 years) and IBM have used every trick in the book to slow the decline and post "healthy" numbers.

        At some point, losing money on outsourcing deals won't be able to be hidden behind tax efficiencies and redundancies and the mountain of cash that they have been using for share buy backs will dwindle.

        It's not in HP territory yet, but it only takes one Autonomy....

  7. lady grey
    Flame

    Poor Ginny

    Hope this improves things enough she gets her bonus. Strangely enough, bonus monies seem to have vanished for the rank and file.

    1. Anonymous Coward
      Anonymous Coward

      Re: Poor Ginny

      Actually bonuses (known as GDP within the organization) have been confirmed for all by Ginni

      1. Anonymous Coward
        Anonymous Coward

        Re: Poor Ginny

        You believe anything coming out of the mouths of the execs? Remember, it's all about PR and image. Real world follow up... again will be "managed" by PR when they break that promise too. Rinse and repeat.

      2. swschrad

        no doubt to be finalized after Friday

        because that's how it works.

  8. AndrewDu

    "a resource action" wtf?

    And the person quoted is an ex-IBM staffer, of course.

    I expect he has a blue suit and a briefcase as well.

    It's whole different world, isn't it.

  9. Anonymous Coward
    Anonymous Coward

    Losing a job is bad enough - losing redundancy pay is really a disgrace. IBM used to set a benchmark in decent severance. However some GS staff will have their TUPE terms carried forward.

    1. Anonymous Coward
      Anonymous Coward

      I agree an employee should be (enforced by law) properly supported financially when they involuntarily lose their job (I think more a year of 70% to 100% of wages, at least, either paid by employer and/or social services through premiums). However at least in the USA almost all employment is "at will", which means you can be fired any time for any (lawful) reason or no reason, you can also quit any time you want without any prior notice. "Giving notice" is merely a courtesy, one employers don't always deserve. There is also minimal social benefits and generally speaking no requirement of an employer to pay any severance.

      When working in the USA it is best to keep that in mind and save and spend accordingly. Make sure you have at least few months worth of pay saved to cover such an occasion. Minimise your debts or have none at all, besides your house perhaps. Consider any severance payments and even unemployment benefits through the(minimal) social services to be an unexpected extra.

      1. temporial

        Nice

        I think that the second part of your comment applies not only to the USA but the world in general :).

  10. LucreLout
    Pint

    Best of luck to all the fallen

    May your next gig treat you better.

  11. Anonymous Coward
    Anonymous Coward

    GTS not GBS

    Internally they're just cutting whatever loses money. GBS (at least in the UK) is still rinsing it so not for the chopping block for a while. A senior exec admitted to me years ago that the plan is to shift to growth, in terms of technology and markets. As Ginni pointed out IBM is moving to become a cognitive cloud service provider. This might means shedding everything that doesn't fit that description that loses money...

    1. Ken 16 Silver badge

      cognitive cloud service provider?

      What DOES fit that description?

      1. Michael Wojcik Silver badge

        Re: cognitive cloud service provider?

        What DOES fit that description?

        Renting time on Watson. While anyone might, with good reason, quibble about "cognitive", that's probably the sort of thing they mean - fancy analytics on shared hardware.

  12. SecretSonOfHG

    Small correction...

    "which builds networking infrastructure and provides high-availability systems among other things"

    should read

    "which SELLS networking infrastructure and provides high-availability systems among other things"

    Because precisely the revenue decline comes from losing customers as they fail to deliver what they sell.

  13. SirWired 1

    Well, Friday came and went

    And just like EVERY previous prediction of some unfathomably huge percentage of the US workforce being let go in one day, it didn't happen. I'm pretty sure IBM would have a NEGATIVE number of people by now if all these predictions were true. I guess we can add Conrad the list with Cringely on it of the folks that either have REALLY bad sources or just make $hit up.

    1. This post has been deleted by its author

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