Rumor: Massive layoffs are coming to IBM later this month
An unofficial online employee Web site, IBMemployee.com, says massive layoffs are coming to Big Blue later this month, according to Times Herald-Record.
“All divisions in IBM will be affected,” says one entry, adding the majority of those cuts will be announced Jan. 23.
“Several more posts say approximately 16,000 employees, mostly in the U.S., will be affected.”
- IBM has more than 386,000 employees worldwide, according to its Web site. If the rumored 16,000 figure proves accurate, then, it would equal roughly a 4% reduction in headcount.
IBM’s been cutting people every couple of weeks, but they’re small, silent cuts. What we’re concerned about is a massive one, according to various insider sources.
Update: Union tries to organize IBM workers
Update 1 (Jan 06, 2008): IBM Employees Buzzing About Layoff Rumors
Update 2 (Jan 11, 2009): IBM approves Obama’s IT stimulus package; $30bn will create 900,000 jobs, healthy IBM
Rumor (Jan 19, 2009): Massive layoff packages offered on 1/27
Update 3 (Jan 19, 2009): Stress levels rise at IBM as word of job cuts swirls
Update 4 (Jan 20, 2009):
- Several sources warn of imminent job cuts announcement.
- IBM Profit Tops Forecast; Outlook Better than Expected, according to CNBC: “The guidance of $9.20 is awesome… looks like their outsourcing, packaging, cost containment strategy is working. They executed really well..”
Update 5 (Jan 21, 2009):
- According to rumor, IBM started to cut sales and engineering positions in US.
- The arguably more-important indicator of IBM’s performance — its top line — fell 6.4%, according to WSJ
Update 6 (Jan 22, 2008):
- IBM confirms job layoffs: “28 out of 45 cut,” according to a another entry, from Austin, Texas. “Young and old, top and bottom performers. Never show me great 4Q numbers again.”, according to Betanews
- IBM employees reported yesterday that the layoffs are already happening in IBM software and distribution divisions in the US and Canada, according to multiple news sources
Update 7 (March 11, 2009): Scattered layoffs in IBM can touch 4,600
Update 8 (March 11, 2009): IBM Cutting More Jobs, Shifting Work to India
~ LayOffBlog.com: Please feel free to comment this info and/or send us your updates regarding IBM layoffs. ~
[...] Mass Layoffs at IBM in January 2009 Possibly related posts: (automatically generated)Rumors: IBM plans Mass Layoffs of 16,000Chasing Value: No layoffs at United Parcel [...]
Please let me know if this rumor is true. Most likely massive layoffs would eventually happen. Massive Layoffs means …bailout? just a guess.
#2, stay tuned for the topic updates then
Probably sending those jobs to India. What else is new? These companies should be brought up on charges of destroying our national security, entire economy and fined huge fees for giving US jobs to people in India and China and elsewhere. This bullshit needs to stop now.
Mike, you are so right. This BS needs to stop now. Until these companies are penalized for sending American jobs off shore nothing is going to stop.
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We don’t have anything against India and we wish you guys the best but it sucks that you are taking our jobs. Once again, not your fault, it’s IBM’s fault and you should know we are fighting it. Build your own companies with jobs and compete AGAINST IBM instead of taking American jobs. IBM will fire you the second the find someplace else to do the job cheaper so don’t get too comfortable.
what and get paid $5.00/hour, I’d rather work at McDonalds
By leaks from inside (Richmond, VA): technical support seems safe for now
Massive layoff packages offered on 1/27. Stand by….
[...] Rumor: Massive layoffs are coming to IBM later this month An unofficial online employee Web site, IBMemployee.com, says massive layoffs are coming to Big Blue later this month, [...] [...]
The layoffs are real. The managers in Software Group are laying off employees today. I have this confirmed from my manager and from 2 other managers within software group.
This is the 2nd round on layoffs in the last few months - about 300 people in software group went at the beginning of Dec and now they’re culling the sales teams. I’m hearing about 10% of US software sales people are gone along with ‘almost all’ of the ibm.com sale team.
This is a significant cut in sales people which is combined with the usual massive quota increases - and management wonder why moral is low….
The key is to survive the layoff by keeping the impact as low as possible. the best way to ride this wave is to be prepared for the extreme . I firmly believe in the Murphy’s Law especially the 3rd one, ” Whatever can go wrong will go wrong, and at the worst possible time, in the worst possible way”
if any one interested in a no-nonsense game of “layoff survival” check out http://www.crootpad.com , a fun way to see different options to survive layoff.
I really wouldn’t doubt that this is true. IBM has some great commercials, but I doubt it’ll save ‘em.
I’m in the software group, and there were layoffs today. We lost one of our team and all the positions (3-4) that we had that were still open. About 10% of our team all told. I think we got off lucky, only because we were already running understaffed due to attrition.
#5: Is this ‘plan B’ (’B’ stands for’Bangalore’)?
Yes, I can confirm layoffs are starting to happen for IBM USA. I’m aware of them in Software Group.
Interesting how it seems the layoffs are mostly in the US. I guess no one values our purchasing power globally anymore. The more US workers laid off - the less imported (or local) products and services bought. But I guess that doesn’t matter to the businesses IBM supports. This recession is a depression done in a way that the eggheads have never seen before so the models and numbers are out the window.
For years the global corporations and government have had this mentality about the bottom line. Whatever it takes to get there matters the periphery doesn’t. Well, you cant simply reduce people’s salaries in major technical job sectors, or export millions of factory jobs, or bring in tons of cheap labor and replace the natives here without it impacting tax revenues, purchasing power, and other basic things to a growing economy. Both have created a situation where to import goods and services is cheaper than building or having them here locally, but its slow mtion suicide. When we try to export the same we are faced with resistance and taxes from our global trading partners. Its all come home to roost. http://www.madnamerica.com Get this song on your radio station today!!!!
“Interesting how it seems the layoffs are mostly in the US. I guess no one values our purchasing power globally anymore. The more US workers laid off - the less imported (or local) products and services bought. But I guess that doesn’t matter to the businesses IBM supports. This recession is a depression done in a way that the eggheads have never seen before so the models and numbers are out the window.”
I think this is purely as US workers are easiest to lay-off. Lack of labor laws in the US.
I think US workers are easiest to get laid-off. Lack of cheap labor in US is the reason.
IBM has over the years developed a case of organizational bloat. They have been doing ‘redistribution’ of jobs offshore wherever they can. Everyone who gets laid off now has my whole hearted sympathies of course, but hey, IBM’s got to do what they got to do.
very sad news
I cannot imagine how these people who get laid off will survive in the current economy. There aren’t many jobs available.
One of my friends just got laid off and got a package saying that they will help them find a job in China.
If I had to put a wager on who would do a better job (money not being a problem), I would put that on an American Programmer.
That said, I believe that it is easy to get an Indian Visa and live in India. There are some Indian companies that are hiring in Bangalore… Infosys and Wipro to be specific.
It may be worth for us Americans to work there if we can afford mortgages for 1 year. It is global experience after all.
I hear that Indian Aviation has our of work American pilots because they couldnt get jobs with AA, UA etc… May be worth thrying the IT sector too.
@22 Brutal Reality
its quite funny that this is now an option ! What abt the H1Bs coming to the US ?
[...] Dan ada rumor bahwa IBM berencana sejumlah 16.000 karyawan [...]
A statistical analysis has been performed on data for the four “software engineer” categories from IBM’s list of people being laid off. It shows that older workers are more than twice as likely to be let go than younger ones (at 1% and 5% significance). This information is being passed on to the law firm representing the IBM employees let go, in exploration of a class action lawsuit.
The numbers thus far do not reach 16000, but another wave is coming in June.
Another rumor is that the IBM plant in Burlington, VT is in trouble - they are operating at only 15% of capacity. A semiconductor fab cannot maintain quality nor profitability at even double that level. If this is true, IBM will soon be faced with the need to sell off their last manufacturing capabilities.
Physicist - Is this really true about someone looking into a class action lawsuit? I was RA’d October 2008 with a last day of 12/1, and now my spouse has received the RA notice with a last day of 2/23. Both of us from SWG, S&D. Both of us are in the 55 and older crowd, with my spouse just about at retirement. We both felt that older workers were being let go on a larger scale, but there didn’t seem to be a way to prove it. I am angry. I wasn’t before, but I am now. We have saved money for retirement, but that will go downhill very fast, and without a quick turnaround, I truly fear we will lose everything. And we are not people who just go out and spend everything we have.
[...] Seattle HQ the rest will be within the regions and “field” employees Autodesk: 750 IBM: Rumored to be 16,000 Home Depot: 7000 Ericsson: 5000 Pfizer and Wyeth: 8000 combined jobs after [...]
Everyone at ibm who doesn’t get ra’d is scared anyhow. It’s not fun working there always wondering if you’re next. They see their friends get ra’d, they wonder “why them and not me?” they see top performers get ra’d and they wonder again, “why them and not me?” on top of that, the ones that remain are reminded that they can also just as easily get ra’d and their work load and pressure is doubled. I would rather collect unemployment and use their education money than work their making little money compared to other companies in the industry, working 12 hour days, sacrificing relationships for my extensive workload only to get ra’d.
It’s true…it’s happening today across marketing as well in the US. I find it interesting that the major media is staying quiet.
There does seem to me to be a heavy lean toward experienced older workers. The package includes a list of title/age of those RA’d and, without adding it up, it seems very tilted toward those who have been around. That being said; there are definitely young workers included and, in my case, it seems that I and a few of my coworkers were selected based on a reorganization of the Hardware sales organization. Either way, they do seem to be doing it in a sneaky way and I too am curious why there isn’t more in the news about it. You would think that they could get more PR by being the company that is making an effort to keep people employed than to spill thousands more into a crummy job environment. BTW, I’ve been with IBM for 11+years and over-achieved my numbers by almost 100% in 2009 and got cut…go figure
Has there been any update on this topic of layoffs at IBM.
These are tough times for some comanies now.
AS PER PLAN ‘B’.IT IS FOUND
“IBM WILL DO layoff engineer designate without BE/BTECH”
IBM layoff people with seperation packages (stating about performance). All gymics. IBM is letting go employess with a gymic about performance.
Amazing how they have people fighting over the positions, even willing to go to India or China (I assume none of you have family), while the executives make mega salaries. They are the ones who fail, outsource them.
I amazed at who it is who decides the layoffs. Obviously those at the upper management. Aren’t they the ones who have these outrageous expenditures on transportation, retreats, entertainment budget etc and then “cook” up the books to mislead the rest of us? They are the ones that still get perks, bonuses etc.
Its not just IBM but the banks, Kodak, Xerox, and the big box companies that are laying off hard working employees, some with little children and family who are uninsurable because of health reasons. How do they manage without health insurance?
Anyone out there who could give advice to these laid off workers?
am still hanging in here, just, sorry to all you guys/girls who have gone, yes you are correct about the senior mngt/execs. 30 plus years and IBM are very very greedy, whats goes around, comes around
What is the severance package at IBM layoff?
extract, Palmisano with our President.
In the past several days, I have been in contact with dozens of business leaders across the country. I know I speak for them when I say that we stand together in supporting your goals, Mr. President.
To re-ignite economic growth…
To create not just jobs, but 21st century jobs…
To invest in ways that build the basis of future competitiveness for the U.S.
There is no reason to undertake projects simply for the sake of activity. Rather than simply stimulate, let’s seize this opportunity to transform our country’s infrastructure and economy… to create more and better jobs… and to develop new and more valuable skills.
WHO IS KIDDING WHO, here Sam
IBM is having employee account with ICICI(another instable company).Employee with mimimum 4 lakh per annum on average went for 20lakh loan for apartment/home through ICICI. Alredy 50%-60% cut in performance linked salary.EMI may be 18 To 20 thousand per month.Slary itself is less thnan 20,000/- PER MONTH.now all eemployees are panic.
more layoffs for IBM next week… and then more in June…. stay tuned….
f*ck IBM maybe they should move the entire company to INDIA.
worthless POS’s they are..
I can confirm this - I was notified today MY job went to ARGENTINA! I hate this company and hope for it’s complete failure.
Another thing…Has anyone else noticed that here in the ol’ USA we can’t STOP Latin Americans from getting in to this country and we can’t stop our JOBS from GOING to Latin America?
Lets here it for that POS OBAMA and his POS “stimulus” plan to wipe out middle class america right before our eyes.
I’d like to say more but I might get arrested if I did.
jeeeeeeez uzzzzzzzzz
Come June 1st 2009 IBMer’s working the Disney account across the country will be replaced by Indian’s overseas. In the coming weeks IBM is having Indian’s flown over for cross training from the very people they will be replacing.
Rumors are that some full time IBM employees have already been informed they have until June 1st, 2009.
Disney the all american company hires IBM, who is known to be pushing global offshoring. Plot? i guess Disney didn’t want their image tarnished, so they used IBM to save them money.
IBM shame on you. You ask for millions in stimulus funds yet are moving jobs to India. Disney, Walt would be rolling in his graves. These days, it’s all about the short term stock price. It’s obvious that rebuilding the American economy means nothing.
Too all those that have been affected or are going to be, you will be in our thoughts
the IT stimulus that promised to create jobs, for which country… India?
In all fairness, I may be qualified for a position that is offered to me.
But why would I want to move to a whole new country just for the job ?
If IBM offered the position to me in India they would no where near pay the same salary im currently getting and would they relocate my whole family ?
Im pretty sure they won’t. So its still a lose / lose even if the job offer is obtained.
I am ex-Oracle, not an IBM-er. I just reviewed IBM’s Job postings on http://www.ibm.com. The numbers of job postings are telling: China – 403 job, India – 459 job, HK, Indonesia, Japan, South Korea, Malaysia, Philippines, Singapore, Sri Lanka, Taiwan, Thailand and Vietnam add up to 427 job. US – 376 job. So that’s 1,289 jobs shipped overseas and just 376 jobs (less than 1/3) staying here in the US. If IBM accepted stimulus money, they cannot use it to hire candidates overseas. It’s the law. However, with Congress and the Treasury Dept policing how the money is being spent, it will be very easy for IBM to do so without notice from the Federal government. The only thing you can do is fire your Senator and Congressmen in 2010 for their screw-up.
We were all let go a few weeks ago, 150 IBM employees in Atlanta,Ga and 150 employees in Dallas Tx. The jobs are going overseas. Thank you Mr. Obama for giving IBM 30 million dollars, the money was well spent. By firing all of us…The new IBM Motto…BETTER FASTER CHEAP…send the Jobs overseas for $5.95. Wow. Alert the Media
NEW IBM MOTTO, BETTER FASTER,CHEAPER, OVERSEAS, INDIA, MANILA, PHILIPINES,NEGRON,EGYPT, IBM IS LAY OFF FROM 16,000, TO 20,000, NATION WIDE. LOWER COST OF LIVING, LOWER PAY, THE IBM EXEC’S ARE GOING TO GIVE THEMSELVES, BIG BONUSES AT THE END OF THE YEAR, MORE STOCK ALLOCATIONS, BIG CHRISTMAS PARTY! AND WE ARE LED LIKE LAMBS TO THE SLAUGHTER HOUSE. MAY GOD HAVE MERCY ON THERE SOULS!
I am one among those whose name got on the ‘redeploy’ list back in the winter. Redeploy, yea, that,s what they called it… I found out on 3/26 that they’d be out of a job 4/27 unless I’d find myself another job within the corporation.
I let you guess what happened …
I had been with them for about 15 years. I started out at HELP PC as a technical support rep. By then, IBM was not doing great, but not the least. It was doing everything it could think of to keep its head above water. Everything including make us lie to their customers who bought AMBRA’s and APTIVA’s computers. YES, they were making us lie to the customers to make them believe they did not purchase crap (which they did in fact) until their waranty would be expired.
But, that’s only one minor thing I guess.
The point I want to make is that while they needed me, I was there doing what they needed. So in all fairness, we can say that I helped IBM get out of the difficult situation it has put itself into because of its abnoxious attitude toward its customers.
Time went by, things got better. During all the time after, I worked for them to the best of my capabilities to make IBM stand for quality.
As a token of recognition, I got the boot with a stinking seperation package that represented roughly about 6-7 months of gross salary.
You think I will ever buy IBM product again ? Nhaaaa Not even if it represents the best value. Neither will I ever buy IBM again, nor will I ever work for them again.
Sam, if I could, I gladly poo in your shoes.