back to article After promising Donald Trump jobs will come home, IBM swings axe

IBM's post-election promise to President Donald Trump to bring jobs home appears not to have been entirely accurate, as the company is making redundancies at home and stands accused of shipping jobs to Asia and Europe. The axe that started swinging in January 2016, in an “aggressive transformation” that in March 2016 saw Big …

  1. Ian Michael Gumby
    Boffin

    You get what you pay for...

    When you offshore jobs... the quality of work goes down..

    With respect to IBM... they are terminating staff that they can make redundant as they shift to the Cloud as their platform and Big Data / Open Source mantra because that's what their customers want.

    So you're in Global Services and do Oracle / DB2 / whatever. You don't know Scala or Java? WHACK!

    Its cheaper for IBM to whack them and hire recent college grads.

    1. Anonymous Coward
      Anonymous Coward

      Re: You get what you pay for...

      "When you offshore jobs... the quality of work goes down" which I'm sure is not true in every case. It's certainly different to somewhere in London, where for ideological and political reasons experienced contractors are being replaced by permies - or, in fact not replaced, as there is also a hiring freeze for skilled/experienced people? I'm sure it's impossible this combination will lead to work that could have been done in-house being given to a cabal of suppliers (along with IPR ownership and fat margins, plus of course the potential to extend a dependency for years ...... )

    2. GruntyMcPugh Silver badge

      Re: You get what you pay for...

      "When you offshore jobs... the quality of work goes down.."

      .. and I'm not convinced it delivers significant savings either. One of the major problems we had with our offshored colleagues was staff churn, we never got to keep people for that long, so were having to retrain people far too frequently.

      The only complaint I have with the article is it says "The axe that started swinging in January 2016", it's hardly ever at rest, I can't remember all the code names of 'rebalancing exercises' but there was Quantum, Jura, and Chrome at least, pretty much one every couple of years, if not more frequently.

      1. Anonymous Coward
        Anonymous Coward

        Re: You get what you pay for...

        When I've worked as an architect with an offshore team providing L2/L3 implementation support for say storage or Unix, my experience is that there are a few stars who are as good as anyone I've worked with here in the US. The problem is they are in such demand they job hop like crazy because they get offered big raises to move on.

        Few companies want to give those guys enough money to stick around - they outsourced to save money after all, if they keep giving raises to the guys who are as good as anyone here it cuts into those savings.

        Another problem is that the managers in India seem to have no idea who the stars are, or at least the guys I saw getting promoted or heard about getting raises to stay were almost always deadwood. Maybe they value being a 'team player' or dressing well or something else instead, but it sure didn't seem to be based on how good they are!

        1. Down not across

          Re: You get what you pay for...

          Another problem is that the managers in India seem to have no idea who the stars are, or at least the guys I saw getting promoted or heard about getting raises to stay were almost always deadwood. Maybe they value being a 'team player' or dressing well or something else instead, but it sure didn't seem to be based on how good they are!

          I have noticed that too. Seems that the ones who can talk the talk get recognized, whether they can walk the walk or not. Talking the talk and alleging to be able to do anything seems quite prevalent on that continent from what I've experienced.

          1. eldakka

            Re: You get what you pay for...

            In India, bribery, kickbacks, licking the bosses ass, and being of the right caste are the norm,

            If you looked into it, you'd probably see that the ones getting the raises and promotions were the ones who were giving kickbacks (I'll give you 20% of the raise I get for the next 6 months...).

            I work with a lot of immigrant Indians and Pakistani's, and getting out of that culture is the main reason for a lot of them immigrating.

      2. David Murphy

        Re: You get what you pay for...

        I worked in Ireland for IBM and there was a lot of staff churn, but it was due to ancient code and conditions. Most stayed the minimum 2 years to get their pension contributions vested and then cleared off before their knowledge became obsolete.

        Worst engineering practices and code maintenance I have every come across, technical debt was in the millions, lines of code that is.

        It was all very trailing edge, minimum technical effort to stop customers from leaving.

        Glad to be done with them.

        1. GruntyMcPugh Silver badge

          Re: You get what you pay for...

          " millions, lines of code that is"

          You didn't work with Websphere, did you? :-)

  2. Anonymous Coward
    Anonymous Coward

    The last trump?

    I read the entire article and I can't quite figure out who did what that was wrong and why. I guess IBM isn't only bringing jobs home but is also laying off people, and someone is accusing IBM of continuing to sending some jobs overseas.

    So, Richard, did you write this just to have yet another article with Trump's name in the headline? I can't say I blame you; President Trump tends to be a big draw these days. Still, remember it was all that wall-to-wall coverage the media gave him that ultimately led to his victory, so you might want to tone it down a little.

    1. Steve Davies 3 Silver badge

      Re: The last trump?

      don't worry, he's still gonna build that wall.

      Getting Mexico to pay for it is another matter entirely.

      I do wonder how many Mexicans will be used to build the wall?

      1. IwantedacoolusernamebutallIgotwas

        Re: The last trump?

        But.... Mexico will need that wall soon to keep all the Yank out who are trying to escape.....

        1. allthecoolshortnamesweretaken

          Re: The last trump?

          Not that soon... but when the beloved leader renames the country into the Democratic People's Republic of North America, all bets are off.

          1. foxyshadis

            Re: The last trump?

            That name would be tantamount to high treason, a hanging offense....

            It'll obviously be Republican People's Republic of North America.

            1. Anonymous Coward
              Anonymous Coward

              Re: The last trump?

              Some of you appear to be confused about ideologies. It's the Democrats who have the totalitarian tendencies, being socialists. President Trump and the Republicans are capitalists, at least in theory, altho many in senior positions have been corrupted by wealth and power and more closely resemble high-level Democrats these days.

              That's why we have Trump as President you know. It's a reaction to that whole 'uniparty' thing so many have complained about for years. But now that the people have finally slapped down the uniparty just a little, many supposedly intelligent posters here are rising up to join with the power elite to attack and hopefully destroy the upstart threatening the elite's power base.

              Sure hope all you enlightened socialists enjoy being pawns of the rich.

              1. Anonymous Coward
                Anonymous Coward

                @Big John

                The republican party is FAR more fascist than capitalist. Fascists place great importance on over the top patriotism, social conservatism, strong military, and strong police. None of those are necessary for capitalism to thrive (police are, but not the "cops are always right" brand of policing)

                That fit the republican party to a T, just as socialism fits the defining characteristics of the democratic party. But people like you who are utterly brainwashed by one side never see weeds on your side of the fence, and see nothing but on the other.

                1. Anonymous Coward
                  Anonymous Coward

                  The republican party is FAR more fascist

                  Ah. Had to make up your own definition of fascist to try and make that fit, eh?

                  1. Anonymous Coward
                    Anonymous Coward

                    Re: The republican party is FAR more fascist

                    What's YOUR definition of fascism? I certainly can't find one that doesn't include nationalism and militarism.

                    If I was going to write my own definition, I'd do like this:

                    https://www.washingtonpost.com/posteverything/wp/2016/10/21/how-fascist-is-donald-trump-theres-actually-a-formula-for-that/

                    1. Anonymous Coward
                      Anonymous Coward

                      Re: The republican party is FAR more fascist

                      The WAPO? Seriously? Dude, those guys have no credibility left whatsoever, along with the NYT.

                      Yet I keep seeing such links purporting to support some leftist political point, that (I suppose) we're expected to accept at face value. Ain't gonna happen anymore. If you can't argue your points directly without reference to slanted opinions from the WAPO, don't bother trying.

                      1. Swarthy
                        Headmaster

                        Re: The republican party is FAR more fascist

                        If WaPo is not up to your standard, how about Dictionary.com who define it thus:

                        (sometimes initial capital letter) a governmental system led by a dictator having complete power, forcibly suppressing opposition and criticism, regimenting all industry, commerce, etc., and emphasizing an aggressive nationalism and often racism.
                        (My emphasis)

                        1. Anonymous Coward
                          WTF?

                          Re: The republican party is FAR more fascist

                          WAPO and particularly NYT have been considered propaganda outlets for decades, especially by you leftists now holding them up as paragons of truth! What the actual fuck?

                          And dictionaries are simplistic.

                          Fascism is one of those words that means whatever you want it to mean. Anyone who uses it in earnest is just blowing hot air.

                          1. Anonymous Coward
                            Anonymous Coward

                            Re: The republican party is FAR more fascist

                            Will you please stop calling the Democrats left-wing. They're right of centre, just as the Tory party is here in the UK. The Republicans are just further to the right. Calling the party fascist is going a bit far although there are certainly plenty of elements of it there. A lot people seem to confuse conservatism and capitalism with fascism. They're not the same thing, although there are certainly plenty of people who associate with all three, or move amongst them.

                            Fascists are certainly not capitalists. Capitalism is founded on the basis of free movement of trade; that people who work hard should be able to succeed, that there are no free lunches etc. These are strong values of most Republicans.

                            Blaming foreigners is not capitalism, although it could certainly be argued that those foreigners who aren't playing fair, as Trump puts it are not engaging in free trade. Creating jobs locally is to be commended, but isolationism and trade wars will only serve to choke free trade and will ultimately lead to those jobs becoming unsustainable. It will also turn the rest of the world away from the US and the dollar and into China's hands. Not a good move for the US.

                          2. Anonymous Coward
                            Anonymous Coward

                            @troland

                            So failing to find anywhere that defines fascism in a way that doesn't look like the new administration, you've decided "it can mean whatever you want it to mean" despite not finding any definitions that can show Trump isn't one.

                            1. Anonymous Coward
                              Anonymous Coward

                              Re: @troland

                              You pick a politically dirty word, and sure enough the dictionary definition exactly matches your conception of a particular politician you oppose.

                              WHAT A COINCIDENCE! :-O

                              1. Anonymous Coward
                                Anonymous Coward

                                Re: @troland

                                Turns out I'm not the first to say this.

                                > It will be seen that, as used, the word ‘Fascism’ is almost entirely meaningless. In conversation, of course, it is used even more wildly than in print. I have heard it applied to farmers, shopkeepers, Social Credit, corporal punishment, fox-hunting, bull-fighting, the 1922 Committee, the 1941 Committee, Kipling, Gandhi, Chiang Kai-Shek, homosexuality, Priestley's broadcasts, Youth Hostels, astrology, women, dogs and I do not know what else.

                                -- George Orwell, 1944

              2. VanguardG

                Re: The last trump?

                Actually, per the Constitution of the United States, this nation is a Republic - not a Democracy. So is the UK - in fact, there are essentially no Democracies anywhere in the world. In a Democracy, every piece of legislation, every action, and every national stance is decided directly by the people in a direct vote, majority rules, there are no Presidents, no Prime Ministers, no Premiers, no Parliaments, no Congresses. In a Republic (sometimes misleadingly termed a "representative democracy" those issues are voted upon by..an elected legislature. That's the only way small communities, farmers, ranchers, and anyone who does not live in a major urban center ever has any chance to get their concerns and desires heard. Its just a shame that we really only get two idiots to select from each four years...we would be much better off to have a bit more of a choice. Some people become, or remain, President entirely because the opposing party fielded such a pathetic candidate. To this day, I still think Michael Dukakis hired a comedian to run his campaign and just never realized it.

      2. Anonymous Coward
        Anonymous Coward

        I do wonder how many Mexicans will be used to build the wall?

        They'll probably use the traditional building materials instead.

        1. Anonymous Coward
          Anonymous Coward

          Re: I do wonder how many Mexicans will be used to build the wall?

          What about a wall made entirely out of orange hair?

        2. This post has been deleted by its author

    2. Anonymous Coward
      Anonymous Coward

      Re: The last trump?

      Could it be that different pairs of eyes read the same text differently? I believe the article is saying a) IBM promised the White House to bring jobs home, and b) despite the promise the Big Blue continues with the layoffs, optimisations and re-balancing as planned. It might hire a thousand of college graduates only to "optimise" another thousand or two of highly-skilled staff. New hires - tick, cost reduction - tick.

      As a person who has to deal with the Three Striped Letters I can assure you that there is a constant increase of the addresses ending with @in.ibm.com for years with no visible signs their percentage will even fall.

    3. HmmmYes

      Re: The last trump?

      I would not worry about being confused by what IBM are doing. Even IBM managers dont know.

      Id recommend googling Robert Cringley and IBM.

      Id also recommend not put any business with IBM, and looking for a new supplier for any work that is with IBM.

    4. Mark 85

      Re: The last trump?

      So, Richard, did you write this just to have yet another article with Trump's name in the headline?

      IBM and the MSM did make a big deal about IBM bringing back jobs, etc. Even the visit to Trump was played up by them.

    5. Ian Michael Gumby

      @Big John... Re: The last trump?

      IBM has been slashing jobs as they 're-balance' the work force.

      What IBM is doing is slashing jobs and older workers who do not possess the skills that are required as IBM does a technology shift. So they are cutting the workforce. As they hire new workers, they are hiring 6K in the US, 19K elsewhere. When Rometty went to Trump, she promised to bring jobs to the US. The 6K jobs were baked in. So she's not really bringing jobs and when you net it out... IBM will reduce their US Jobs.

      1. Anonymous Coward
        Thumb Up

        Re: @Big John... The last trump?

        IBM is doing exactly what we predicted after the last IBM jobs story here.

        Now to see if Trump is serious about wielding his big stick against IBM. Maybe all he has to do is tweet about it. Quick, sell your IBM stocks before he hits send!! haha

    6. VanguardG

      Re: The last trump?

      The jobs they're *hiring* US workers to fill are jobs they *laid off* US workers to open up...that's not "bringing jobs back", as promised, that's maintaining status quo, at best. A bit like having 3 beers in front of you and promising your friend they'll be there when he returns from the loo. Then you drink all three, have three new ones poured (on the friend's tab) and claim they're the same three that were there all along.

  3. Anonymous Coward
    Anonymous Coward

    watch the hands - dont listen to the mouth

    #alternatefacts - that is all..

  4. John Smith 19 Gold badge
    Unhappy

    MBA --> Money Above All

    Committing to leaving jobs in a certain place to foster stuff like "loyalty"

    That's vision.

  5. Anonymous Coward
    Anonymous Coward

    > IBM rival HPE is also moving jobs from the USA, openly admitting a goal to place 60 per cent of its people in "low-wages locations".

    "We can't compete with our products, so maybe we can compete on the balance sheet. Somehow."

  6. Calleb III

    Don't worry, they will be bringing these jobs (along with the Indians who are currently doing them) back to the US in due course.

  7. Anonymous Coward
    Anonymous Coward

    >Big Blue still employs around 300,000 people worldwide, but doesn't provide breakdown of staff by region.

    Should be a fairly easy task for an IBMer to write a script to trawl Bluepages and report that back. Maybe someone who's on their way out anyway may wish to do that.

    :-)

    1. GruntyMcPugh Silver badge

      Sadly the IBM staff directory presented externally is coded to restrict results and therefore isn't easily scalped. Shame 'cos we could have flexed some powershell otherwise.

  8. Anonymous Coward
    Anonymous Coward

    All kicking off again the UK

    Just annouced this morning trch support services is forming an employee consultative commitee. more heads to roll

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