System iNetwork

January 28, 2009

IBM Layoffs Continue, Numbers Unknown, Hundreds Hit Rochester?

Layoffs from major corporations across the country have been hammering the news lately, and IBM is no exception. Although many corporations have been relatively upfront about the number and scope of their layoffs--Home Depot, Caterpillar, Sprint Nextel, Texas Instruments, Microsoft, Pfizer, Best Buy, General Motors--IBM is keeping its numbers secret.

Sure, the company has admitted that it's taking some "resource actions" and has been laying off workers, but in any news story that includes IBM that I've been able to dig up, the company has clearly dodged questions on the numbers or locations of the layoffs.

To be fair, I traded voicemails with an IBM public relations spokesperson, but we have yet to connect. I'm sure he's busy fielding calls from much bigger publications. Either way, when I see him quoted by newspapers that have IBM divisions in their home towns, he's not saying anything substantial. I highly doubt that he would tell me anything interesting enough to share. And that's the way of it.

Little Cuts Don't Even Need Bandages

The problem is that IBM has a massive global workforce of about 400,000 employees. The latest number being bandied about is that IBM layoffs could reach 16,000 . . . which is about four percent of its staff. That's a small fraction, and if IBM is continuing to hire new employees, the total relative percentage of "lost" jobs shrinks even further. In that case, does IBM really owe more information to its shareholders? And if the numbers really are small, isn't IBM just doing a bit of responsible trimming? You know, like a butcher who slices off some extra fat before he weighs the steak and slaps a price tag on it?

Right. But that's not the point here, is it? The U.S. is in a recession, and IBM is a technology sector leader. However, IBM isn't acting like a leader. All the company has to do is say, "Hey, here's what we're doing. Here's where the cuts are. And we know this sucks for our loyal employees. But this is where we're at right now, and this is what we're doing to make sure IBM remains strong and healthy."

But silence?

That just dehumanizes IBM's workforce. I don't think any reasonably smart tech sector employee is oblivious to why companies lay people off. Yet IBM doesn't seem to understand what's going on in the world. Doesn't some really smart guy with a pretty tie at IBM--who's way more intelligent than I am--realize that he has the power to talk frankly?

And why wouldn't IBM want to control its media message to world? Why not give the talking heads on TV an opportunity to say, "Wow, look at all these other tech companies slashing while IBM is just trimming. What's IBM doing right?"

Might that not help change the whole tone of what's going on?

Little Consolation

For those who have already lost their jobs, many of your colleagues and industry peers are sincerely sorry--but they're also breathing tight sighs of relief that they still have jobs.

The Alliance@IBM employees union website is claiming that IBM has cut nearly 3,000 jobs so far and that more cuts are expected -- and likely in June.

Further Reading

NBC news affiliate KTTC is reporting that IBM has made "800" job cuts at its Rochester, Minnesota, facility, most of which are from the Systems and Technology group.

The local Rochester newspaper, the Post-Bulletin, reports on some of the regulations that IBM may or may not be following surrounding the Rochester job cuts.

Posted by cmaxcer at January 28, 2009 10:23 AM