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A once-great company in a long death spiral

Engineer
Current Employee
Has worked at IBM for 20 years
May 9, 2014
New York, New York
1.0
Doesn't RecommendNegative OutlookDoesn't Approve of CEO
Pros

Smart, dedicated co-workers; some vestiges of the old collegiality at the working level.

Cons

IBM's business model is totally out of date.

They are now being marginalized by new players like Google, Amazon, etc., and old competitors like HP-Compaq.

As sales are falling drastically, they can't fire people fast enough.

The executives are running the place like a third-world banana republic: Massive bonuses for themselves, the working stiffs in the US are all being fired for low-cost third-world labor offshore.

The only engineering innovation that matters any more is financial engineering of the Earnings per share.

However, EPS targets can only be achieved by layoffs and share buybacks, due to falling sales, and Wall Street isn't fooled.

Businesses and employees are being jettisoned at a rapid pace; a much smaller and weaker company will be the result.

Advice to Management

Stop treating all non-executive employees like serfs. Invest in new projects, don't shut them down the minute they fall below some unrealistic profitability threshold.

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