Thread regarding IBM layoffs

T2.0 will transform our service delivery model

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Not looking so crazy anymore. Especially if you work in services

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Spot on deduction! The company is in process of preparing to get parted-out so they can sell those parts individually, just like a stolen car in a chop-shop.

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Here is an observation / question on this article

  1. Why would you hire a consultant to tell you how to run your division. There is no expanding business here, but rather just trying to get costs under control. Even IBM exec’s are smarter than to expose themselves to upper management that they don’t know how to lower costs or restructure their division. My guess is there is far more to this than just head count. Bain is noted for their “buying assets on the cheap”. This division of IBM is the perform division of services, (high labor content) and if I had to speculate, IBM asked Bain to take a peek, and they said, “you need to right size” before we can find a buyer, or buy you ourselves.
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