"Slaughter House": First Person Accounts Of How IBM Just Fired Thousands Of Workers Across India

Tyler Durden's picture

A week ago, the Dell dude warned that it's going to be a layoff "bloodbath" as the recently LBO-ed firm began firing 15,000. Now it's IBM's turn.

According to WRAL Tech Wire, the company which has underperformed Wall Street's expectations for many quarters, has begun "cost-rationalizing" terminations in India - the country that hosts some 100,000 of IBM's employees and where IBM reportedly employs the greatest number of workers. The unit targeted is the Systems Technology Group which is the troubled hardware group selling its low-end x86 server business to Lenovo for $2.3 billion and where Big Blue's executives have launched "Resource Action", also known as "rebalancing" but best known as mass, across the board terminations where by some estimates up to 13,000 of IBM's 434,000 workers are set to be let go.

As WRAL reports, Lee Conrad, head of union efforts to unionize IBMers, has received emails from workers as well as a reporter in India. The "RA" is expected to hit IBMers in North America as early as Feb. 19, based on internal speculation. In other words, look for a notice that IBM is laying off thousands in the US in the coming days.

"Still waiting here in the U.S." Conrad wrote.

But for now, quietly and under the radar, India is getting the pink slip Friendo treatment. And if the handling of IBM's Indian workers is any indication of what the company's US-based employees can expect, it ain't much:

Below are various scribbled or detailed notes sent out by IBM's workers upon learning they have just been made redundant. All reflect sudden notices - and quick departures, with many reportedly being quite emotional.

"Slaughter House"

"Job cuts in India STG. Announced today including managers.Asked to return laptops with in 2 hrs and leave premises."

"STG Bangalore literally turned into a slaughter house today.

"Several employees were called to a meeting and RA'd.

"Their TPs were confiscated and they were asked to vacate premises immediately.

"Severance package was on an average 3 months basic component of salary, which is like 6 weeks full pay.

"RA per department as on today

  •     SRDC 40%
  •     Processors 15%
  •     SRAM 80%
  •     SSE Just began, final numbers not available

"RAs expected to last till friday.

"The fear is that HCM might be wiped off totally in a day or two. EDA and methodology numbers not yet available"

"People broke down after seeing the inhuman treatment.

"Laptops along with the cases were confiscated, so several employees were seen crying and exiting building carrying and balancing their personal belongings
with their two hands"

Two posts at the Alliance website also referenced layoffs at Bangalore, which is known as India's "Silicon Valley."

"RAs Started in Bangalore"

Three other posts give insight into what's happening in Bangalore:

"IBM today had a massive layoff in STG bangalore more than 40% staff was let go off in a single day. Be it PBC 1 or 2 doesnot matter you are just asked to leave IBM premises by immediate effect. I fail to understand how joB cut will help management to achieve 20 EPS. The upper executives lack vision and clarity to restructure business process. Good bye to ibm hopefully will be in better place than ibm."

"RAs started in STG Bangalore, hearing that large numbers impacted. Will keep you posted on the details as i get them. the job market is reasonably good outside and the average experience here is about 6-7 years.people are not too worried. most were anyway sick of the company and its junk policies. -Bangalore RAs started-"

"People were reacting to the sale of semiconductor business news rather harshly, well wishers were asking me when was I planning to leave IBM, and the others sarcastically asked me what am I still doing here in STG. Felt very embarrassed walking in the corridor today. The general perception here is that if you are still with IBM, it is because you did not find a job elsewhere. Phew !! that just means to say IBM STG is being considered the worst place to be at this time. We all at STG India would like to express solidarity with the IBM USA work force preparing for yet another RA in the coming weeks. Rest assured we do not feel any better being employed with IBM either. The flood gates are opening and I anticipate that we will lose all our above average work force in the next 3 months. Good luck to you all, I am sure there is life outside of IBM. bye for now, time to update my resume, keep in touch. -STG INDIA-"

* * *

The good news, if only for shareholders: IBM will spend billions on stock buybacks and dividends in 2014... because paying wages is so not New Normal.

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Muddy1's picture

BANZAILook out below!!!!!!!!!!!!!!!!!!!!!!!!!

Pure Evil's picture

Couldn't happen to a nicer group of monkeys.

Outsourced my ass.

Obchelli's picture

That means IBM beats numbers next report - Market rallies on this - IBM one of major Dow components and bla bla bla...

Zero_Sum's picture

Their TP was confiscated? Harsh...

HelluvaEngineer's picture

Yeah, after years of observation, we've determined you guys can't code for shit.  CTRL-C, CTRL-V this bitch!

EDIT: apparently this is the hardware division.  I stand by my comment.

TruthInSunshine's picture

MyRA'd -AND- their TP (toilet paper or ThinkPad?) was taken away.

James_Cole's picture

Don't worry, GS is going to help save IBM:


"IBM is exploring a sale of its semiconductor business in what would be its most significant strategic move since it faced a financial crisis in the early 1990s.

The US technology giant has appointed Goldman Sachs to sound out possible buyers..."

zaphod's picture

IBM hires more employees in India that the US because US companies do not care about their home country at all and neither does their government.

But that is NOT the case with China. 

Now that IBM is selling more and more of its parts to Chinese companies, do not expect the Chinese buyers to continue to employ so many Indians in India. Lenovo will quickly cut the India workforce and move employment to China, that is smart government and corporate policy. The US used to understand this but then got fat off of the FED and free money. By the time the US wakes up, all decent employment based off of US inventions will be overseas and not come back. 

Leaf of Tree's picture

As planned a long time ago.

The East is a couple of chess moves ahead of the West.

And the Illuminati types are OK with it.


Start learning chinese. Ni gau sum dak saw nakid gurl in da ppol.

0b1knob's picture

"That which goes around also comes around."   The Enlightened Budha

The outsourers are themselves outsourced.   Eventually IBM will have all their code written by monkeys or something. 

Crawdaddy's picture

From that link - Culture is the cliff against which the ships of globalization are crashing.

Yes and it all working as planned. Crush cultures by creating pain until the pains of separation look greater than the pains of unity. Unity under one world govt.

The people of the world must unite to stop the NWO.

Ironic is it not?

Oh regional Indian's picture

Hah, ironic it is indeed Crawdaddy...

Stay apart to come together, or come together to stay apart....or some such!

The age of iron, Kali Yuga, drenched in Irony...


StychoKiller's picture

Why can't you hindoos pin down the end of the age of kali yuga better?  The range is huge!

Ranger4564's picture

Culture is just a crutch, a set of beliefs that have no bearing on reality, a set of practices which are entirely meaningless, an association with history which has no relevance, and mostly, a conditioning device to brainwash the masses. To many people, they have no personal depth, so they need culture to fill that void. I call such people cultural caricatures.

Once you look past the various cultures which divide us, you can see we're mostly all the same, and we could work together without losing our identity, but most will not bother, requires too much work and too much reflection.

But I agree, fuck the NWO, because it's being imposed from above and not being built from the foundation..

The Dunce's picture

Perhaps Indians are much too expensive.  Maybe Cambodia will be the next destination.  Bitches.

Jack Burton's picture

It's obvious that corporate America uses the US government when it needs it, and it uses foreign workers when they need them. The idea that either the US government or US corporations have any loyalty to the people of America is long since proven to be a joke. Congress right now is working hard with Obama's help to push through the TPP, a so called trade pact, which is instead a legal formulation for extra national corporate dictatorship, or quasi fascism, with corporate power expanded to a level never seen in history. The AMeican people have no roll in this, other than what corporations seek to make of us. If TPP passes, you will witness things you did not believe possible, national laws will be subject to corporate approval, and they can be brought before an international pannel of corporate lawyers who will determine what lawas are valid and which are not. Any national law that effects a corporations potential for profits will be judged void. This includes matters of pay, pensions, unemployment insurance, tax laws, health care mandates.

For thos ehaters of Obama Care, and corporation under TPP could demand that a three judge pannel of international corporate lawyers rule on it's validity. If it might negatively effect a potential for profit, then it will, by TPP lawm be voided. Along with any private law suit brought by a citizen, if a corporation pollutes your farm land for example. States and individuals rights under national and state laws are all voided by TPP, and the TPP courts of corporate hacks will settle what is a legal act and what is not.

Obama is allied with the entire republican and democrat party to jam TPP down our throats. The media is silent, because the media hopes to profit from many extra legal rights under TPP. Obama is evil of the Hitler level. Not since Hitler has such evil existed, or perhaps not since Bush was president, either way, Bush and Obama are 99% the same, the 1% difference is on social issues that are non of governments business in the first place.

My thoughts are, fuck you Obama you snake, you liar, war criminal and corporate cock sucker.

Jumbotron's picture

**** DING DING DING ****


Absolutely SPOT ON Jack.  Of course this started in earnest globally around the turn of the 20th century and with us in particular in 1913.

Global Corporations do not care a wit for the Consitution.

Rafferty's picture

The pity is that IBM, when it was an 'American' as distinct from an international company was a very good and considerate employer and created great technology.  But globalism has made them like all the rest, no loyalty or consideration for any person, country or thing, just impress Wall St.

Ranger4564's picture

Unless the people of the world unite and oppose this corporate transition, we're all fucked for a very long time. This is corporations eliminating governments. Some people don't realize we have 2 governments, one we wanted to protect us, one foisted on us to control us. The government being eliminated is the one we wanted, the oppressive one will not be removed, it will be the enforcement arm of the corporate dictatorship.

For those who keep saying they can't act because they have too much to lose... how about trying to prevent the inhumane world in which your children and your grandchildren will have to live in? Grow some fucking balls and have a little bit of consideration / compassion. I know, not possible on a site where self-interest is the mantra.


PT's picture

You know shit is bad when they can't even afford to pay Indian workers.

Lumberjack's picture

For those youngsters that didn't get the video...

H=I   A=B   L=M 



Jack Burton's picture

Great one PT! +100  You are right, how bad is it when they are firing the fucking Indians?!?!?

Indian_Goldsmith's picture

Such racist hatred is well deserved. You americans should send those indian workers at silicon valley back to this shithole where i live. I can foresee the resulting demographic disaster when all these indians become unemployed violent assholes. But I WILL NOT KILL MYSELF folks. I WILL SURVIVE!. even if it means surviving on soylent green and living in an apocalyptic Munbai

The_Dude's picture

I'll drive!!!.....let me know what airport or boat dock to drop them at.....

e_goldstein's picture

You could always eat that shirt.

Crawdaddy's picture

apocalyptic Mumbai would be an upgrade

Getafix's picture

That's pretty hilarious, and totally true for most of India, not just Mumbai. 

Ranger4564's picture

You fucking hypocrite. Why should anyone love Indians when Indians hate and abuse their own? First build a humane society, then come back and we can talk about how you're offended because Indians are being mistreated by outsiders.

India was and has always been an apocalyptic nation... the caste system, the heavy reliance on slave labor, the immoral beiief that everyone else is there to serve you... all that crap is so ingrained into your mindsets, you can't see how evil the ideology is.

That's also why so many of them can be the CEO's of so many corporations... heartlessness is a common thread between the caste system (pyramid scheme) and the capitalist system (pyramid scheme).

TheMeatTrapper's picture

IBM is a fucked up, shit for brains company. 

I'm an IT consultant and the largest contract my firm ever got was from a large bank to "fix" what IBM fucked up. As a result, we learned to follow IBM around and make a good living unfucking their messes. 

It's insane. 

Typical scenario:

A potential client issues a Request for Proposals. We submit an accurate, honest bid. The corporate types who don't know shit about IT but make the IT purchasing decisions (first fucking mistake by the corporate structure) rolls their eyes at us for being 'the little guys'.  IBM rolls in with their fancy ass sales pitch and bullshit marketing and shmoozes the decision makers. They win the contract. They fuck it all up and waste millions of the clients dollars. 

We then get called back and have to bust our ass to fix everything and get the system back on schedule.

Anybody who works for, or does business with IBM in any respect what so ever deserves what they get. 

The problem is that the corporate types don't give a fuck. They don't want to pay Americans to do an honest job. They don't want to hear the truth. I recently had a client terminate their relationship with me because I wouldn't tell them what they wanted to hear. They'll keep shopping until they find somebody that will. They want to cut corners, crunch numbers and get their up front, short term bonus for 'cost savings' which means cutting corners and hiring Indians who can't speak English or use common sense when designing a system. 

The coporate purchasing agents aren't the end users of the systems they purchase. It's like buying groceries for someone else to eat - who gives a shit what it tastes like as long as it's cheap, after all they don't have to eat their own dogfood - somebody else does. All they care about is collecting their bonus and going to the football game. 

I cannot stand cowardice. The corporate world is second only to government in that regard. 

I'm thinking about becoming a machinist. 

Welder's picture

Machinist ? Give welding a try.

TheMeatTrapper's picture

I have close friend who has an engineering degree from Clemson. He does very sell and lives in the wealthiest community in the State. 

He recently went back to night school to learn to weld. It was supposed to be his 'fallback plan'. 

He started picking up scrap and now welds it into "art" that he sells to his yuppie friends. Makes damn good money off his fallback plan. 

Crawdaddy's picture

Looking for courage in corp US is a fools errand these days. Although rare, it can happen. I once saw an exec VP stand up in front of the whole company (telecomm and video links to 25k people) and explain why outsourcing was a shameful failure. He gave hard numbers proving that outsourcing not only failed to meet the financial goals but actually cost the company 2.3x more money than if we had never outsourced. The entire (usa born) crowd applauded. Said exec mysteriously left to "spend more time with his family" soon thereafter.

The people running most Fortune 500 companies are not simply cowards, they are in on the deal. They sold their soul for 20 pieces of bitcoin in exchange for temporary control and illusionary power. They are the foot soldiers that are crushing our culture. Remember that when the time comes.

ReactionToClosedMinds's picture

sad truth largely .... we push our parents down the stairs for a bigger house .... except it is your 'neighbor's ' parents not our own.....

Pumpkin's picture

All these outsourcing horror stories should give everyone a big hint here.  Outsourcing IS NOT A BUSINESS DECISION!  It is a social engineering dicision!  Now all those 'foolish mysteries' make a lot more sense, don't they?

RafterManFMJ's picture

Insightful posts like this one about International Bowel Movement are one of the main reasons I attend the Hedge.

Rafferty's picture

Trapper, very true.  Seen the same thing myself for years. As you say corporate purchasing make the decision but from a different perspective the supplier (e.g. IBM) SALES  people determine price and scope of work.  Usually a mismatch to get the deal.  The implementation people then don't have enough budget to do it properly.  Enter the supplier Contracts people who know every trick of the trade and they get out of ithe project with a handy profit while you go in and fix it at a fraction of the cost.


The amazing thing is that time and time again the big 'consultancies' get repeat work, no matter how often or how big they fuck up.  Accidenture are the worst by far but it seems to make no difference to the fuckers in terms of winning business.

Robinhood's picture

They can code like shit and they never test it, so expect nothing better than shit.

I'm sure hardware is no different. Wait? I just had to send brand new hardware back because the memory battery wasn't backing up the memory. Sucks to be the RTC. 

Rafferty's picture

Short-term profit focus frowns on testing, especially regression testing which is seen as a complete waste.  And the problems often don't surface until well after implementation, at which point IBM (or whoever) hold the whip hand.


However IBM used not be like this, say up to early nineties.  They used to be a great company, who would have done anything to avoid shoddy work. Admittedly at an exorbitant cost.

anti-republocrat's picture

Early '90s, yup.  That's when Gerstner took over.  IBM Rochester had a small disk unit that was years ahead of competitors.  I watched Gerstner brag on corporate tv about how another manufacturer had offered to buy the unit, but it wasn't for sale.  Next thing you know, he gives their mission to San Jose, lays off some and forces others to choose between relocating from their lifetime homes to sunny expensive California or leaving the company.  Seagate, Western Digital and a bunch of other outfits picked up all the talent.  He didn't sell the unit.  Instead, he destroyed it and got nothing for it.  IBM missed out on the .com boom, but Wall Street thought Gerstner was a wizard for turning the company around when it would have turned around anyway due to a rebounding economy after the Bush (43) recession.

Wahooo's picture

Wasn't there just an article about how companies have fallen in love with Indian CEOs?

jenniewadeguy's picture

I too have "observed" them for years and can come to no opinion different than what you have offered.  They can't code for shit.  Nor can they design or even understand anything in the IT world beyond the most very basic.  Indians truly SUCK in the software engineering arena!  No ifs, no ands, no buts about it.

Jack Burton's picture

A friend of mine in Britain and an other in Sweden both work in high end IT for major medical systems. They both say the same, Indians were brought over to their companies by the hundreds to write code on the cheap. According to my friends, most of their work has to be reworked by the European staff for it to function. They say Indians suck at code, yet they work cheap. Bottom line and all that, eh what?

HobbyFarmer's picture

SAP ABAP programmer here....worked with dozens of other programmers on dozens (hundreds) of projects over my 15 year career.  The offshore work always means tons of issues, end-user frustration, and re-work. 

Us Americans can code as well as any Indians or Germans.  We are more expensive on a per hourly basis than the Indians, but cheaper in the long run.


TheMeatTrapper's picture

A close friend who is a senior software developer for a medical software provider used to run a team of 15 or 20 Indians in India. It was his job to "manage" them and make sure things were on schedule and up to par. 

The company has now shifted it's model and it runs a team of 4-5 senior, experience guys  - and no outsourcing. 

They are getting better quality, faster turnaround and more agile development from a small team of qualified people than a large team of unqualified people. 

Who could have imagined that? 

Crawdaddy's picture

Offshore sucks for most anything other than monitoring. The only thing that sucks worse is the current project mgmt love affair known as Agile. Agile + offshore = angina.