IBM layoffs strike first in India; workers describe cuts as 'slaughter' and 'massive'

If I were in IBM this would be a nightmare come true.

IBM's latest $1 billion "rebalancing," as described by its CFO last month, is underway. And the first country hit is India, based on reports from Blue Blue workers there on Tuesday. The so-called "Resource Action" struck in the country where IBM reportedly employs its greatest number of workers.

One employee describes the layoff process as a "slaughter."

The business unit hit is the Systems Technology Group - IBM's troubled hardware group which is selling its low-end x86 server business to Lenovo for $2.3 billion.

Workers were given little notice. Reads one note just sent to the union seeking to represent IBM workers:

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

Other notes as cited below were much more detailed. All reflect sudden notices - and quick departures, with many reportedly being quite emotional.

One analyst has estimated that IBM will cut 13,000 of its more than 434,000 workers, based on the amount of money set aside for the rebalancing IBM disclosed after another quarter of disappointing earnings. A similar action in 2013 led to some 3,500 job cuts in North America alone, with several hundred hitting IBM's North Carolina work force.

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.

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

IBMers have described the rebalancing as "Project Apollo." The 2013 action was called "Project Phoenix."

WRALTechWire has reached out to IBM for comment but as of early Wednesday had received no response.

Given IBM's importance to the company both as a market for its business and the number of employees based there, Conrad said the cuts starting first in that country came as an unexpected development.

"I am a bit surprised, but given it is STG it was expected," he said.

One email from India is printed in full in order to capture the atmosphere of what took place. Acronyms refer to various IBM work units, except TP which is believed to refer to employee ThinkPad computers. Bangalore is the headquarters for IBM's India-based operations.

"Slaughter House"

"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."

IBM employs more than 100,000 people across India, according to India media reports. IBM no longer discloses employee numbers by location.

Source : IBM layoffs strike first in India; workers describe cuts as 'slaughter' and 'massive' :: Editor's Blog at WRAL Tech Wire

bloody hell...!

what the hell ?? thats inhuman !! :O

How the hell Lenovo, a chinese company pull something of that IBM can't?

I used to have a high opinion of IBM and thought of it as one of the best IT companies of the world;however my perception has changed completely after reading this shocking report about the despicable treatment that they are subjecting their employees to nowadays-i feel very sorry to learn about the plight of these helpless individuals,who have been sacked recently for no apparent reason-I wonder what i would have done if I was one of those affected by this situation.Indeed,the future of the IT industry in India looks very bleak and dismal at this point.

quicky008 said:
I used to have a high opinion of IBM and thought of it as one of the best IT companies of the world;however my perception has changed completely after reading this shocking report about the despicable treatment that they are subjecting their employees to nowadays-i feel very sorry to learn about the plight of these helpless individuals,who have been sacked recently for no apparent reason-I wonder what i would have done if I was one of those affected by this situation.Indeed,the future of the IT industry in India looks very bleak and dismal at this point.

I have some friends and seniors working in IBM, believe me, they are not getting any better treatments than others working in different IT companies, whether IBM is a giant or not, their IT arm in India is just another slave camp, just like all the other IT companies here, its not like google who keep their amazing work environment active in India as well.

^^ you are either a foot solider or among the generals and kings!

Hmm this is sad...but I knew from the previous recession that IBM do not keep people on bench for more than 2 months...and kick them out as son as possible ....soo this treatment was comming sooner or later.

But I don't think it's IBM doing so, it may be lenovo.

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

This is something highly objectionable in my views.

There should be strict labour laws against these practices. This is way beyond any ethics.

A

I heard before that IBM sack people with short notice. Now in current situation, most of the IT company(in India) asks to leave within 1 day. So 2 hours is not shocking, but it is inhuman :/

but they are being paid 3 months salary in advance ...thats good enough to search for a new job

R

IBM is so sick. They've 1 Month's salary in adance in their hands. But, do you guys think everyone of them will be getting jobs in a month's time? Job hunting is so ruthless these days. I've experienced enough of it.

but they are from IBM ...those guys will just create tough compitition for common IT guys like me ....Now I wanted to shift company in November ...what if these 13000 IBM guys takes away all the job in IT this year....I will be dead

sujoyp said:
but they are being paid 3 months salary in advance ...thats good enough to search for a new job

It's easier said than to be done in present volatile situation(Political + Social + Economical) at India...

Friend,no offence please,my personal subjective opinion.

Now imagine the impact of global out sourcing on US population. No wonder they are furious about this.

It's all about revenue. If the company does not meet the required revenue target, they will start laying off people without mercy. This is the case for all companies and any company, no matter how lenient, would do the same IMHO if faced with such a scenario.

I wonder if that devyani khobragade case has to do something with this.....

regarding notice and money given to a sacked employee is 3 months basic pay(which is about 40% in avg. company for avg. employee). So they are giving roughly one months salary.

avinandan012 said:
I wonder if that devyani khobragade case has to do something with this.....

regarding notice and money given to a sacked employee is 3 months basic pay(which is about 40% in avg. company for avg. employee). So they are giving roughly one months salary.

How??

Ronnie11 said:
There should be strict labour laws against these practices. This is way beyond any ethics.

In Indian IT industry there are no labour rule and no policy regarding the same. The laws which exists today are heavily backdated and are for manufacturing industry which is pretty much dead.

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DeSmOnD dAvId said:
How??

Well may be some patriotic shareholder wants reinstate the company as an American company

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India = cheap labor

sujoyp said:
but they are from IBM ...those guys will just create tough compitition for common IT guys like me ....Now I wanted to shift company in November ...what if these 13000 IBM guys takes away all the job in IT this year....I will be dead

Sorry to hear that my friend,i hope and pray that you won't be affected by these worrisome new developments and that you'll be successful in making the transition from your present employer to a better one by the end of this year.

sujoyp said:
but they are from IBM ...those guys will just create tough compitition for common IT guys like me ....Now I wanted to shift company in November ...what if these 13000 IBM guys takes away all the job in IT this year....I will be dead

in which technology are you working on?

People are just slaves to these companies.

Is such cutting common even in hardware/support departments? Or only in software development?

Renny said:
People are just slaves to these companies.

Is such cutting common even in hardware/support departments? Or only in software development?

The cut happened in hardware, not software.

avinandan012 said:
in which technology are you working on?

I am working on Oracle EBS R12 as a functional consultant ...would have love to get in IBM someday

sujoyp said:
but they are being paid 3 months salary in advance ...thats good enough to search for a new job

3 months of basic salary. Don't be too happy about that :lol:

This news is not fully correct. Yesterday I contacted one of my ex colleague who is now working in IBM. STG people were intimated 3 months before. They have also been given 3 lakhs job compensation.