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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.
Another member of staff that spoke under the cloak of anonymity said it was “galling” that IBM has an “army of Bain consultants here working on this. perhaps we wouldn’t have to RA (redundancy action) so many people if we weren’t paying their fees,” he added.“[It] is the usual ’No idea what to offer these people, we’ll get to them eventually’, but the numbers make grim reading as 5k out of 30k may not be redeployed or offered roles that replace external suppliers,” an IBMer told us.“IBM has a weird understanding of people's skills, and how to fill job roles.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.Staff suspect there will be more of the same this time round.
The new split being pushed forward, multiple sources told us, is a 20/20/60 ratio that effectively means IBM wants 20 per cent of GTS on-shore at a country level, 20 per cent in nearshore locations and 60 per cent offshore.
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".
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 $92bn 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.
Exclusive IBM has indicated to senior Global Technology Services management that a third of the global workforce will be “productively redeployed” in 2018 with tens of thousands of personnel “impacted”.