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"Slaughter House": First Person Accounts Of How IBM Just Fired Thousands Of Workers Across India
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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Lamb vindaloo long!
FTA: "13,000 of IBM's 434,000 workers are set to be let go."
That's 3%. Slaughter, I tell you! Slaughter!
I love the smell of RA-Balm in the morning. I love a good slaughter.
Can't wait till someone lets a sparkley in DC. Party on Garth.
Only 13,000 (of 434,000) and they're whining 'bloodbath'? This can and should go a LOT further...
it will - there are paperwork processing limits at first - then they ramp up.
Please do the needful
Despise that phrase. Always used by red dots in IT.
.
Ahh yes that "global" connection. Welcome to the party monkies!
This is SOP to prevent blackmail or sabotage by a disgruntled fired employee. You don't even let them clean out their own desk. You have them out of the building within 20 minutes of firing them.
Which is why you'll start seeing little thumb drives of really interesting information popping up soon enough.
Some Information Tech / Security guys keep thumbdrives like that prepared LONG before.
Hell we had a woman in one department that apparently had job security scripts on timers. She unexpectedly went on vacation (family emergency in China) and a week later all heal broke loose with the firewalls. Good times.
Logic bombs FTW!
You can bet there were inspirational posters in the break room!
Once again demonstrating the stark difference between China and India. In China, anything like this would be flat out illegal and get the company blacklisted and fined incredible amounts. Laying off over 20% or more than 10 people of your workforce (whichever is less)? You have to get approval for that. Cutting people to boost profit isn't legal either, at least not like this. You can do it, but you're looking at massive compensation and restrictions on who you can kick out... pregnant? nope. Had a kid in the past 4 years? nope. At the company over 10 years? nope. 10 years or less from retirement? nope. Repaying a mortgage? Technically yes, but only after you've fired everyone else. And firing people to boost profit alone... you're looking at having to buy out the full contract to do it. And before you do this, you can only really do it if you cannot find a position in another department at the same or higher salary, and generally only if you are nuking an entire department. And even then, you're looking at about a 4~6 month notice.
Or you know, in neoliberal hellholes where the wage slaves can just be kicked out with no notice whatsoever.
With the Indian Rupee becoming more and more affordable and attractive to the American entrepreneur, I predict that the jobs will be plenty again in India. Their devalued currency is a boon to their economy. Tatas for everyone!
This is a microcosm of American corptocracy. If you work for a large corp this is your future. To all IBM employees and American careerists it is time to invest in an alternative plan. preferably one that contributes to the local economy. Fuck the corporations that have betrayed your trust. You owe them nothing. You owe yourself and your family everything. Let IBM and other conglomerates die from their own misguided deeds.
I will now boycott all large corporations and invest only in local companies. Fuck you and your globalist agenda.
I can't believe that all those Indian workers are going to go quietly weeping into the night the way Americans do. Somebody is going to set themselves on fire on IBM's front steps and that is going to create a HUGE backlash. I would not be at all surprised to see IBM kicked out of India, or (even better) to see mobs descend on IBM's buildings and start hacking off white heads. Remember what happened to the British when they went just a bit too far?
Nobody has mentioned that most major defense systems require a ton of code written for operation of the micro's.And the big chips are made overseas as well.
To sum up: hardware and software vulnerable to cyber attack or implanted,ticking logic bomb.
There was a classic case during the Falklands war where they had to chopper an IT tech onto a Royal Navy frigate.The Seawolf system could not select a target when Argie pilots were flying in pairs and split apart.Just seems a bit rough when you have due stuff in the middle of a battlefield or mid-ocean.But they did get the Exocet problem sorted finally.....
yup ...at the end of the line ... we are all 'clans'.. I'm ok, but whomever is not. More perncicious....... I'm ok..... but >>>>"they" are not
Empires always show their inherent weakness first along the perimeters, these are the appetizers, as then the beast comes home for the real feast. Bon appetite!
SMH.... you guys are delusional. Every single one of those laid off workers will be on a plane heading to the American West Coast within the next 6 months with that gynormous IBM stamp of approval on their resume. I guess none of you have been on any transpacific flights recently. Every flight going into San Fran is wingtip-to-wingip chochablock full of Indians waiving around computer science degrees, bringing their wives, kiddikens, mumsies, popsies, nieces, cousins, third cousins... it's the great dream of the New World Order to eradicate Western Civilization through the steady and relentless importation of 3rd worldlings at all costs. Sweden is 16% Somali... Holland is 17% Moroccan... Britain is 23% Pakistani... Vancouver is nearly 38% Chinese....
At some point "assimilation" breaks down because "they" quite simply don't have to anymore. Your language, customs, culture... and species... will be eradicated from the face of the earth in less than 4 generations.
Continue your applause.
"Indians waiving around computer science degrees" - at least half of them fake. And their knowledge is lacking A LOT.
I had an American buddy who had worked with a young Indian guy. The American is an insanely good programmer. The Indian kid would email to try to get him to send him code snippets for his homework. The American guy would laugh. Unreal.
Isn't it odd the most favored immigrants are all religious in a non-traditional way?
thank you ZeroHedge for this posting...let everyone be aware.....0% interest rates can buy alot of time.......but not eternally....hence my analogy this is the early 1930s slowed down due to QE and central bank intervention to save the political & financial elite.....and the 30%+ USA voters who have no idea what is going on
YES!!!!!!!!!!!!!
Cheap indians working for half the price but taking 10 times as long. Who thinks this is a good idea? Well, many US firms do.
IBM: India Bowel Movement
I love the smell of RA-Balm in the morning, along with a good IBM. Now that's outsourcing; can someone pass me the TP, I hear there's plenty available.