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08-Sep-2017 20:09
In the case of IBM, it will not replace staff as they leave or their contract position is stopped/ not renewed.
Presumably IBM is basing this figure on previous years' data - the relentless grind of repeated redundancy programmes across GTS has seen morale on the shop floor deteriorate.
It is now 22 straight quarters since IBM last reported global top line growth and its bottom line has shrunk during that period.
IBM generated bn in cash in those lean years from 2012 to 2017, but chose to return 80 per cent of it to shareholders instead of using it in other ways.
IBM revealed in the chart, which quoted Bain Analysis as the source, that fundamentally some “30.9k people is the total [headcount] Impacted” and that 9.3k of those souls are expected to be redeployed.
On the left-hand side are the current positions of the employees, referred to as "sources of release", and on the right-hand side are areas where IBM anticipates them moving to this calendar year, the "uses of release".
Some 6,000 of GTS people (g & h) are to be moved to help IBM cut costs as it tries to in-source or eliminate vended services and in-source sub K (sub-contractor) roles.
The company wants to stop hiring cross-company resource and external services, a contact told us.
“IBM has a weird understanding of people's skills, and how to fill job roles.In an internal document distributed among senior execs, IBM revealed how it would “transform our service delivery model” in the year ahead with “30 per cent of SD&T (service delivery and technology) to be productively redeployed in 2018”, suggesting the total global GTS workforce is 103,000.Included in the slide deck is a graph - seen by us and shown here - detailing the “projected headcount impact of 2018 actions” for 30,900 employees, including 10,900 from the domestic (US market) and 20,000 across the globe in Client Innovation Centres (CIC).Multiple redundancy rounds were launched last year within the services division to cut local costs and export jobs to lower wage locations.
El Reg previously exclusively revealed Big Blue wanted to base eight in 10 of its GTS employees on these areas by the end of last year.
They wish to redeploy resources by making X roles redundant in the country, then pushing resources to take on new roles that have not been filled - like customer-facing new business engagements,” he added.
