Tag: suits

IBM suits revolt against CEO’s Trump endorsement

suitsCEO Ginni Rometty might be enthusiastic of her love of Donald Trump and his plans to build a national Muslim registry, but her staff are getting rather hacked off with her.

The IBM suits are revolting against their CEO’s pro-Trumpery in a very public way and telling her not to include IBM in Trump’s plans.

In November, Rometty wrote Trump directly, congratulating him on his electoral victory and detailing various services the company could sell his administration. The letter was published on an internal IBM blog along with a personal note from Rometty to her enormous global staff.

“As IBMers, we believe that innovation improves the human condition. … We support, tolerance, diversity, the development of expertise, and the open exchange of ideas,” she wrote in the context of lending material support to a man who won the election by rejecting all of those values.

However IBM employees were horrified and some of them are denouncing her letter and asserting their “right to refuse participation in any US government contracts that violate constitutionally protected civil liberties.”

The IBMPetition.org effort has been spearheaded in part by IBM cybersecurity engineer Daniel Hanley, who  started organizing with his coworkers after reading Rometty’s letter.

He has told the press that he was shocked because IBM has purported to espouse diversity and inclusion, and yet Rometty in an unqualified way was reaching out to an admin whose electoral success was based on racist programmes.

The petition now has 51 signees, which is a tiny fraction of the company’s enormous global staff, but has only circulated only privately. The full IBMPetition.org letter can reads: :

“We are disappointed that IBM CEO Ginni Rometty’s open letter to President-elect Donald Trump does not affirm IBMers’ core values of diversity, inclusiveness, and ethical business conduct. For our mutual aid and protection, we call on IBM to expand diversity recruitment programs, and we assert our right to refuse participation in any U.S. government contracts that violate constitutionally protected civil liberties. We call on IBM to demonstrate commitment to our Business Conduct Guidelines and to prevent perceived influence peddling through Trump affiliated businesses.”
“In response to your open letter to Mr. Trump [1], we are disappointed that you did not reaffirm the core values which differentiate both IBM as a company and us collectively as IBMers. While we understand your willingness to engage in constructive dialogue with the president-elect, we believe our shared culture and values remain not only constant, but also central to our transformation underpinned by cloud and cognitive initiatives. As you know, more than 400,000 IBMers around the world work in environments where diversity — including diversity of thought — is the norm. IBM values this because our diversity helps create innovation that enhances every aspect of our business.

“Your internal memo to employees, advocating diversity and the open exchange of ideas, echoes IBM President Tom Watson’s Policy Letter #4 [2]. Watson’s letter reaffirmed IBM’s moral leadership by refusing to discriminate on the basis of race, resisting the prevailing attitudes of governors in the southern United States. In this instance, Watson sacrificed short-term business interests in order to be on the right side of history, something IBM takes pride in today.”

The letter goes on to say that taking a conservative approach has grave implications.

“Our own founder’s experience and the rest of history teach us that accommodating those who unleash forces of aggressive nationalism, bigotry, racism, fear, and exclusion inevitably yields devastating outcomes for millions of innocents.”

The IBM petition is perhaps the first of its kind, a rare instance of tech employees directly confronting their management in an industry where organised labor is unheard of.

Already one IBM employee Elizabeth Wood has publicly quit the company shortly after reading Rometty’s letter. Apparently she provided advice and helped with drafts of the IBMPetition.org letter.


IBM is sending suits to the cleaners

suitsThe ever shrinking Big Blue appears to have ordered huge lay-offs in its US offices – nearly a third of its employees.

To make matters worse Biggish Blue recently changed its severance policy, reducing a potential maximum of six months of benefits to a month. The new policy only applies to those who lose their jobs due to the elimination of a position which appears to be what is happening.

The WatchingIBM Facebook group released details of suits who have been in the company for nearly 40 years and have been told to clean out their desks with just a month’s pay.

Apparently IBM is moving the work to Hungary and Brazil although some H1B visa workers are staying.

Managers are reading redundancies off scripts claiming that one third of the U.S. workforce is being ‘rebalanced.’ with it.

They are giving us 90 days paid working notice, one-month severance, and $2500 in money for retraining.

IBM is telling staff that it is just a skill set change but it is more to do with shifting jobs off-shore many of the staff are telling the press.

A Big Blue spokesman said that rumours of layoffs affecting a third of the U.S. workforce today are untrue, and  IBM “currently has more than 25,000 open positions” as part of “transforming its business to lead in a new era of cognitive and cloud computing”.

Although that does not really explain what staff are telling the media.

IBM’s doom spiral continues

suitsThe ever shrinking Biggish Blue’s decline has continued after it told Wall Street that it was suffering from a bad case of falling revenues.

IBM reported a 12 percent fall in first-quarter revenue as the technology company continues to shed unprofitable businesses to focus on cloud-computing stuff.

Shareholders were not surprised and the share price stayed stable after the announcement.

It was the 12th straight quarter that the Armonk, New York-based company reported a drop in quarterly revenue, including the effects of currency.

IBM’s revenue has been shrinking for three years now as the company sheds low-profit businesses such as cash registers, low-end servers and semiconductors and focuses on emerging areas such as security software and cloud services.

While it has gotten rid of the old businesses, the new ones have so far failed to make up for revenue.

Fortunately, most investors are showing patience with IBM’s slow transformation, after all if you can’t trust a man with in a suit with a business title which is longer than War and Peace, who can you trust?

IBM did say that it has generated $7.7 billion in total cloud revenue over the past 12 months, up sharply from the year before.

Technology investors are focused on the new internet-based “cloud” model and which companies are making money from it. Amazon.com is expected to disclose financials from its Amazon Web Services cloud unit for the first time later this week.

IBM, which gets more than half its revenue from overseas, also said it now expects a seven percent impact from currency headwinds in the full year. It said in February it expected more than six percent.

Net profit fell slightly to $2.33 billion for the quarter ended March 31 from $2.38 billion a year earlier. On a per share basis, profit rose to $2.35 from $2.29 as there were fewer shares outstanding in the first quarter.

Still IBM is doing better than Wall Street expected, so that can’t be so bad.
Total revenue fell to $19.6 billion from $22.2 billion. That was broadly in line with analysts’ average estimate of $19.64 billion.

Intel reshuffles top suits

Intel has decided that the way forward for dynamic change is to shuffle its suits and give them new offices and titles.

Intel named Brian Krzanich as chief operating officer, a post from which he will continue to run manufacturing, but apparently he will also take control of internal IT and human resources. Not quite sure how much commonality there is between these various arms, but we are sure Kranich will not try to train a manufacturing line so that it can connect employees to their mail servers.

Krzanich has been running Intel’s manufacturing operations and was responsible for Intel’s successful transition to the 22-nanometer process, so that makes him a winner to headhunt typists.

Intel is also promoting Dadi Perlmutter, who was responsible for Intel’s chip design and development, to chief product officer. He is now Intel’s second in command alongside Sean Maloney, who is now heading Intel’s China operations.

Also promoted is Kirk Skaugen to run Intel’s PC Client Group, which was previously run by Mooly Eden. Skaugen ran Intel’s Data Center Group, and is credited with growing the division’s revenues from $6.5 billion in 2009 to over $10 billion last year.

Eden is moving to the Promised Land of Israel where Intel has a manufacturing plant and is the country’s top employer. Intel has heard rumours that rival GlobalFoundries is building a plant in Abu Dhabi, although the last we heard that project was on hold so the prospect of an Arab Israeli chip war might be a little one-sided.

Diane Bryant, previously Intel’s CIO, is taking over Eden’s work. Replacing Bryant as CIO will be Kim Stevenson, formerly the vice president of IT Global Operations and Services.

All of the shuffling will be in place in a month, as soon as the offices can be redecorated, and visas arranged.