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Heard on the Grapevine

About this information:

The following is from our several anonymous sources in IBM, *however*, please keep in mind that management can change direction at any time, and some or all of these may never happen, or happen in some permutation. We do not like to spread rumors, however, it's good to be prepared for anything.

Remember, if we had a contract, we would know the facts ahead of time and work with management to ease the impacts to employees and work out a fair deal for all. Union contracts would go with any group of employees that are "sold" to another company. Please join the Alliance and help us work toward that much-needed contract.


October 1, 2002

  • IGS Application Management Services group in the US is proceeding with a study to move 60-80% of its work to India, Mexico and Belarus beginning in 2003. This is decision is being made by the IBM Controller (R Woods) and Carolyn Maher, VP of IGS. This will eliminate 1000's of jobs in the USA. A large layoff in the US will result.

June 21, 2002

  • This is some news I heard today from a source who has always been reliable in the past. In early fall (around Sept) up to 80% of Tivoli IT will be fired. IGS will assume their duties. Chances to get a transfer into IGS from Tivoli IT are SLIM and NONE.

    Second bit of news, right at the end of the year Tivoli Development will have its second annual Christmas layoff. Massive cuts are expected for Tivoli Development; estimates are up to 30%.

    It seems that Big Blue isn't done with their Big Cuts.

  • MicroElectronics Division is expected to let their workers know if their jobs are cut on Wednesday June 5
  • IGS layoffs are rumored to be scheduled for Wednesday, May 29 - that one came true.
  • The Hitachi deal seems to be going through in spite of some executive concerns.
  • IBM executive decision makers are in disarray about the layoffs. Things keep changing rapidly. One day one group is put on the chopping block, the next day it gets saved, then another goes on the block. There is a lot of stress among the lower management ranks.
  • The TG announcement is expected around 6/11.
  • The layoff roll-out is just beginning. Look for 10% over the entire company world-wide, with some units (within BIS, TG) facing up to 30%, some only 2%, like SWG. The US will bear the brunt of the cuts, since the US is the easiest country to fire people from. (NOTE! IBM in other countries is generally unionized and the country laws are often stronger to protect workers). See the list of some IBM unions in other countries.
  • FACT: If IBM does tell the press any layoff percentages, they will use a world-wide percentage, not a U.S. one, obscuring the true impact to US employees.
  • A proposal is on the table for a joint venture spinoff, possibly made up of about 2-4 companies (we're guessing Sanmina, SCEI, Samsung, Toshiba or Hitachi). IBM employees would be essentially the IBM side of the "investment" of the new spinoff. The plant would not be closed by IBM, however they would lease it to the new venture. The new venture would then do the the dirty work of the layoffs. IBM would look OK and not have lied to anyone! Then, there could be a new organization out of this, emphasizing services from a TG perspective, using the spinoff as a source for manufacturing and delivery of services work.