Thirteen of 300 – A Glimpse into the IBM Resource Action of December 17, 2007
By an affected IBMer

On November 15, 2007 approximately 300 GBS IBM’ers were laid off effective December 17, 2007.
While it is not possible to know the back stories of each of the 300, it is possible to understand the capriciousness, loss of valuable skills, discrimination and illogical decision making and fallacious business strategy that led to the layoff of thirteen. The Service Area Partner and Solutions Lead, who were both promoted within the last 18 months, closed no business and, as a result, over 25 consultants were on the bench.
When the resource action occurred, the Service Area Lead protected her cronies and persons who did not challenge her improper directives (ex: charging utilization to projects on which they were not working).
Many persons who had been on the bench for months were not laid off.
But of the thirteen: (these are not discrete numbers – persons are in multiple categories.)
• Five of the thirteen had full utilization going into 2008.
• Four who lost jobs were certified PMPs –a huge “brain drain” and loss of training costs to IBM.
• Three had full utilization on loan to other groups within IBM but were told they could not transition because the manager could not get hiring tickets as the jobs were going to be off- shored in 2008.
• Three were retirement eligible. The only person in the Service Area on the “old plan” retirement plan was laid off. Few, if any, retirement eligible persons remain in the Service Area.
• Several had major health/medical issues during 2007 so it is transparent that those who “cost the company money” for health care were expunged.
• Minorities and protected classes were a high percentage, leaving few employed in the Service Area.
The bottom line is that IBM kept the partner and solutions lead who signed no business and put 25 persons on the bench, put 4 certified PMPs on the layoff list (and will assign PMs to new projects who are not PMPs), dismissed 5 persons who had jobs and assignments for 2008 that would contribute to company profitability and refused to offer permanent positions to retain highly skilled certified persons because the positions are being off shored.
This glimpse into the poor decision making suggests that IBM has lost its moral compass, kept inept managers, targeted retirees, expunged persons who had a negative impact on health insurance, rewarded strategies that will result in the loss of more revenue, rewarded persons who drove business into the ground, lost valuable employees because of off shoring, laid off certified PMPs, off shored positions such as financial assistants that were USA based roles and laid off highly trained technical persons.
Who remained on the IBM payroll?
• A few high paid managers/cronies that have not signed new business and have allowed major projects to fail.
• Managers who condone unethical business practices such as sending teams for perform before contracts are signed and charging project work to for one client to another’s charge code.
• The young and inexperienced who are “deer in the headlights” and do not understand their dismal future.
• Low cost perform resources.
• Persons who do not ask questions or challenge unfair or unethical business practices.
Those of us “on the other side of the December 17, 2007 lay off list” would advise the remaining
IBM team members to:
• Be prepared for the next round of layoffs. It is coming.
• Pump up your resume with training and start networking outside IBM for career opportunities.
• Be aware that having medical issues interfere with utilization and cost IBM health insurance dollars.
IBM is actively targeting employees with medical issues for Resource Actions
• Assume that you are always subject to being laid off even if you have full utilization or have signed business.
• Understand you work at a manager’s whim. Absent a union contract you are an “at will employee.”
• Assume that, if at all possible, your work will be off shored.
• Clearly understand that you will never retire from IBM - much less retire gracefully. If you were to remain long enough to officially be a retiree, you will be unceremoniously pushed out without a thank you for the years of service.
• Know that up line managers’ decisions and actions are driven by their personal bonuses. They will increase your work demands, hours and utilization target to the point that you cannot within work guidelines take your allocated vacation and still make your yearly PBC goals.
• Understand that there are only 2 options to fix your situation:
leave IBM or stay and organize with the Alliance@IBM.
It is widely known internally that IBM has lost the hearts and minds of its employees.
For those looking to leave it is well known that IBM boosts your resume for the next job.
So enjoy the temporary benefits, learn as much as you can, use IBM as a stepping stone – and keep looking over your shoulder until you have an exit strategy.
For those that need to stay employed at IBM realize that there is strength in numbers.
IBM is able to cut pay, target employees for job cuts, reduce benefits and abolish pensions because
there is not enough push back. Want to change IBM for the betterment of employees and not greedy executives? Join the pushback! Join the Alliance@IBM before it is too late.