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Ibm To Cut More Than 110,000 Jobs

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Quarter of work-force chop suey.

I’ve been hearing since before Christmas about Project Chrome, the code name for what has been touted to me as the biggest reorganization in IBM history. Well, Project Chrome is finally upon us, triggered I suppose by this week’s announcement of an 11th consecutive quarter of declining revenue for IBM. Project Chrome is bad news, not good. Customers and employees alike should expect the worst.

To fix its business problems and speed up its “transformation,” next week about 26 percent 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. Project Chrome will hit many of the worldwide services operations. The USA will be hit hard, but so will other locations. IBM’s contractors can expect regular furloughs in 2015. One in four IBMers reading this column will probably start looking for a new job next week. Those employees will all be gone by the end of February.

http://www.forbes.com/sites/robertcringely/2015/01/22/next-weeks-bloodbath-at-ibm-wont-fix-the-real-problem/

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Reads like a panic measure for short term profit gain at the expense of future stability.

Eleven consecutive quarters ain't that short term. There must be at least the suggestion of a company with a real problem.

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Back in the early 1980's I was just starting my career. I was mentored by a director in his 50's who was, for a young graduate at least, dazzlingly impressive. He was one of those central European polyglots that seemed to have stepped from the pages of a John le Carre novel, which ever European country we were in he'd buy the local financial paper and dash off the crossword in about ten minutes flat, he was on first name terms with the maitre d' of every five star hotel and restaurant, and could navigate through the most complicated contracts at breakneck speed while at the same time holding a conversation of jaw dropping sophistication. I was in awe.

Soon afterwards he took early retirement and moved to Switzerland, shortly before he left he told me that his retirement fund was almost entirely invested in one company, and that never in his long and eventful career had he ever come across a business as perfect as this one. It was IBM.

In the years afterwards I often wondered what had happened to him, and as the bad news about IBM continued to pile up the gloss on his memory slowly tarnished. I've been an active investor myself now for nearly 40 years, but the lessons from his experience still rings clear, it doesn't matter how copper bottomed an investment seems you can never predict the future, and genuine diversification together with modest returns ambitions is the only rational strategy.

Edited by silver surfer

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Eleven consecutive quarters ain't that short term. There must be at least the suggestion of a company with a real problem.

They clearly have deep seated problems which for 11 quarters they haven't resolved, sacking 25% of your workforce sounds like a panic button response to appear to be doing something.

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25% in one go means either catastrophic management until now, with abysmal level of productivity, or blind panic.

I'd put my 2cents on "probably both", which means very bad news for their customers.

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This report is almost certainly horses**t, especially the part about them all being gone by the end of February. Just think about the logistics of such an operation, never mind the amount they'd have to pay out for redundancy packages all in one go.

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This report is almost certainly horses**t, especially the part about them all being gone by the end of February. Just think about the logistics of such an operation, never mind the amount they'd have to pay out for redundancy packages all in one go.

Well, if it is the author has made a big mistake in predicting something that is supposed to happen imminently (ie next week).

If you are to come out with horseshlt it makes sense to do it for something that will happen on a long timescale. That way you can claim you were right if it happens, and everyone will have forgotten about your prediction it if it doesn't.

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"nobody ever got fired for buying IBM equipment"

http://en.wikipedia.org/wiki/Fear,_uncertainty_and_doubt

To be honest, I'd be cr.pping myself if I had signed off on a contract with IBM.

They've had a reputation for reneging on the SLAs for a good few years.

Apparently they think its cheaper to battle the agreement out in court rather than deliver on it.

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To be honest, I'd be cr.pping myself if I had signed off on a contract with IBM.

They've had a reputation for reneging on the SLAs for a good few years.

Apparently they think its cheaper to battle the agreement out in court rather than deliver on it.

Sounds a great way to keep customers. Get paid, don't deliver the service and then argue about it in court. Where do I sign up!

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Back in the late 90s I did some work with some IBM staff whilst I was working on a Microsoft project.

One of their PMs seemed to go out of his way to befriend me and, out of the blue, invited me to an IBM conference in Surrey - this turned out to be in a really expensive cottage in the ground of some expensive country estate somewhere in leafy Surrey.

What followed was bizarre - to this day I am not sure what was going on. Part me of still thinks that it was a typical IBM FUD campaign... but part of me thinks it was somewhere between a Scientology-like program and, um, a swingers' party.

Basically the only people present were msyelf, this IBM PM and his wife - also an IBM employee. They spent the entire evening rubbishing Microsoft and hailing the wonders of IBM. It was one of the most bizarre evenings of my life.

Thought I would share. Perhaps some of you IT lot might have an idea what was going on.

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Back in the late 90s I did some work with some IBM staff whilst I was working on a Microsoft project.

One of their PMs seemed to go out of his way to befriend me and, out of the blue, invited me to an IBM conference in Surrey - this turned out to be in a really expensive cottage in the ground of some expensive country estate somewhere in leafy Surrey.

What followed was bizarre - to this day I am not sure what was going on. Part me of still thinks that it was a typical IBM FUD campaign... but part of me thinks it was somewhere between a Scientology-like program and, um, a swingers' party.

Basically the only people present were msyelf, this IBM PM and his wife - also an IBM employee. They spent the entire evening rubbishing Microsoft and hailing the wonders of IBM. It was one of the most bizarre evenings of my life.

Thought I would share. Perhaps some of you IT lot might have an idea what was going on.

Was the wife hot?

Did she have pants on?

I'll post on this later.

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There but for the grace of xxxxc P/E ratio go darlings such as Amazon, Google, Twitter, Facebook, you name it.

Looking at some valuations the dotcom boom was a dud squib in comparison.

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Basically the only people present were msyelf, this IBM PM and his wife - also an IBM employee. They spent the entire evening rubbishing Microsoft and hailing the wonders of IBM. It was one of the most bizarre evenings of my life.

Were there 'extra-curricular' activities? What happened later in the evening?

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