Mis-match

by Volker Weber

Lots of things have been said about IBM laying off some of their best people, offering some of them jobs in low-wage regions. This from a company with record profits, in business areas that report record growth over years.

I understand that businesses have to adjust to changing markets. If a company feels it needs to lay off people, that can only mean one of two things: bad outlook or bad ethics. We will see what it is for IBM.

Comments

Volker, that is somewhat over simplified. Keeping profit up is essential for raising capital, which is essential for investing in new business, innovations and new ideas. And good profits are even essential for customers selecting their vendors. No customer wants to buy from an unhealthy vendor. I do not think it´s a clear cut decision between money and moral.

Felix Binsack, 2009-02-09 17:40

Felix, IBM tells me its business is booming and healthy.

Volker Weber, 2009-02-09 17:51

what strikes me odd is that they try to keep it under hidden instead of telling whats done. hiding stuff under the carpet usually misfires.

Flemming Riis, 2009-02-09 20:19

Well the IBM x86 server business for example is neither booming nor healthy. No surprise for me as I see projects now being won by vendors that have a full story from Desktop / Mobile solutions to Servers.
And even if a business is booming and healthy raising shareholders value often can be a challenge. At the end you often end up charging more for less and cutting costs. Unfortunately in many segments there now are oligopolies and the big players share a common strategy.

Henning Heinz, 2009-02-09 21:13

Is it signs of the time? Jobs are shifted from the US to Asia and South America. IBM is becoming less and less a US company. Less the half of the workforce is US based for quite a while and almost half of the revenue comes from units with managers that don't have a US boss short of Sam. So the business might have been healthy but might not sustain in the US.
We live in interesting times as the old Chinese curse goes.

Stephan H. Wissel, 2009-02-10 11:36

Recent comments

Marc Henkel on HERE on Android at 21:49
Markus Jabs on PhotoMath at 21:33
Harald Gaerttner on PhotoMath at 16:18
Ingo Seifert on PhotoMath at 16:06
Craig Wiseman on Galaxy Note 4 keeps growing on me at 15:41
Adrian Woizik on PhotoMath at 15:40
Volker Weber on Galaxy Note 4 keeps growing on me at 15:26
Craig Wiseman on Galaxy Note 4 keeps growing on me at 15:07
Richard Kaufmann on HERE on Android at 09:46
John Keys on MixRadio on Sonos at 09:26
Volker Weber on Samsung Galaxy Note 4 has landed at 23:31
Hubert Stettner on Apple’s Jonathan Ive describes his design process at 23:10
Paul Mooney on Apple’s Jonathan Ive describes his design process at 22:46
Ian Bradbury on Samsung Galaxy Note 4 has landed at 21:46
Olaf Boerner on Das DNUG Büro informiert at 16:17
Matthias Lorz on Apple’s Jonathan Ive describes his design process at 11:54
Mirko Zellner on Das DNUG Büro informiert at 11:33
Stefan Lattermann on Das DNUG Büro informiert at 11:16
Ulrich Willer on Samsung Galaxy Note 4 has landed at 10:53
Jochen Kattoll on Apple’s Jonathan Ive describes his design process at 02:18
Roland Dressler on Samsung Galaxy Note 4 has landed at 15:55
Volker Weber on Samsung Galaxy Note 4 has landed at 12:14
ulrich willer on Samsung Galaxy Note 4 has landed at 11:54
Jan Lauer on Apple’s Jonathan Ive describes his design process at 01:48
Volker Weber on Samsung Galaxy Note 4 has landed at 00:01

Ceci n'est pas un blog

vowe.net is a personal website published by Volker Weber a.k.a. vowe. I am an author, consultant and systems architect based in Darmstadt, Germany.

rss Click here to subscribe

Hello

About me
Contact
Publications
Certificates
Amazon Wish List
Frequently Asked Questions
Follow @vowe on Twitter

Local time is 22:34

visitors.gif

Tip jar

Archives

As most of my articles roll off the front page rather quickly, I am making an archive of previous posts available here. You can also use the handy search box at the top of the page if you are looking for something particular.

Last 30 days
More archives

Mobile tag for this page

© 1992-2014 Volker Weber.
All Rights Reserved.

Impressum