[HN Gopher] IBM ordered to hand over ex-CEO emails plotting cuts...
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       IBM ordered to hand over ex-CEO emails plotting cuts in older
       workers
        
       Author : LinuxBender
       Score  : 268 points
       Date   : 2022-06-14 14:31 UTC (8 hours ago)
        
 (HTM) web link (www.theregister.com)
 (TXT) w3m dump (www.theregister.com)
        
       | cardosof wrote:
       | Companies after achieving huge success and growth become finance
       | companies, in the sense that it isn't about technology or
       | products and services anymore, it's just about balance sheets and
       | stock prices and cash flows. Everything becomes money problems
       | and money solutions, like buying smaller players, selling non-
       | core business units, hiring cheaper workers, firing expensive
       | workers, paying more dividends, buying back stocks, etc.
        
       | Mountain_Skies wrote:
       | How many times has IBM been caught discriminating against older
       | workers? Can they be declared a habitual offender and put under
       | court supervision until whatever culture inside the company keeps
       | spawning these incidents gets extinguished? This goes back at
       | least to the late 80s and maybe even further back than that.
        
       | matrix12 wrote:
       | As an ex-ibmer it always felt the stalls were due to short
       | sighted management decisions. That and the rampant nepotism. Age
       | was never an issue, far less so than working in SV afterwards.
        
         | BeefWellington wrote:
         | Yeah, in my time there it was clear that everything was about
         | quarterly targets set by some unseen person with a spreadsheet.
        
       | dakial1 wrote:
       | Being an ex-IBMer let me say that the old timers are part of why
       | IBM has stalled. But I don't mean that happens because of their
       | age, but because of how long they are in the company and also how
       | comfortable they are with all the non-sensical processes and red
       | tape that company has (internally we called it IBM -
       | International Bureaucracy Monster).
       | 
       | Being a "business operator" really has a value there and most of
       | the leadership is made of old timers simply because of how they
       | know how to navigate (and circumvent) all the millions of gates
       | and layer-over-layer of non-value added processes.
       | 
       | Maybe if IBM worked to remove the "Old timers" from the
       | leadership while, at the same time, bringing in older,
       | experienced professionals, but without the vices that 15/20 years
       | at IBM brings, it could be justified.
        
         | mullingitover wrote:
         | How are you defining 'stalled'? They're still the single
         | biggest recipient of patents in the world as of last year.
        
           | bin_bash wrote:
           | It's funny you see filing patents as evidence of innovation
           | when I see it as precisely the opposite.
        
             | mullingitover wrote:
             | I'm not sure how else you can really define innovation in a
             | concrete fashion. Patents aren't exciting, but they're the
             | end product of employing thousands of researchers and and
             | spending billions equipping them.
        
               | rfrey wrote:
               | Researchers, or lawyers?
        
             | alisonkisk wrote:
        
         | sbf501 wrote:
         | > how comfortable they are with all the non-sensical processes
         | and red tape
         | 
         | That's a good way of putting it. There is this "managerial
         | comfort zone" that goes straight up the org chart. I have
         | observed managers evolve to optimize the environmental
         | constraints, delivering the correct messaging, delays, and
         | target zone realignments, just but knowing how to apply the
         | correct templates. On the other side, this has caused top-down
         | management to evolve to push back on these constraints,
         | creating unreasonable landing-zones knowing they will not be
         | hit. It is a crazy passive-aggressive arms race.
         | 
         | Maddening. It is these boondogglers who should be excised due
         | to nepotism and failure to deliver, as well as their enabling
         | upper management. However, the knives-out behavior of the early
         | 90's has changed to "you pat my back..." as competition has
         | vanished leading to monopolies who are free to stroke each
         | other.
         | 
         | Sources: my experience at IBM, Intel, and Microsoft. Among
         | other companies that weren't as large.
        
         | lumost wrote:
         | This is the nature of large organizations. If you bring in
         | fresh leadership, they will often stumble on the internal
         | process. If you try to hire leadership/engineers who have been
         | with the org for a while, they'll often struggle as they built
         | skills dealing with large, entrenched organizations which don't
         | translate to more nimble environments.
        
         | hintymad wrote:
         | > because of how long they are in the company and also how
         | comfortable they are with all the non-sensical processes and
         | red tape that company has
         | 
         | This seems the fate of every company. As a company grows, the
         | stake for making a mistake becomes higher to some employees. So
         | they install processes. They add red tapes. They slow down
         | everything in the name of preventing disasters. In the
         | meantime, a company can't innovate or grow all the time.
         | Sometimes they get into a plateau. And behold, when there's no
         | grow, those who are good at grabbing land will win, and they
         | are the incumbents who do not care about or are not capable of
         | innovation. The results? The company dies, its talents going to
         | other companies, and a new generation of companies rises.
         | 
         | That's why it's so much important for people, at least for
         | most, to chase growth. Growth begets real meaningful projects.
         | Growth makes turf war less relevant (you can't get rid of it
         | entirely). Growth sweeps most of the ugliness under the carpet
         | until, well, the growth stops.
        
           | qorrect wrote:
           | Who do you think has done this _well_ ? It does seem after a
           | certain size most companies succumb to this.
        
             | bin_bash wrote:
             | Apple. Of course they're not as nimble as a startup and
             | they release a dog now and then, but by and large they
             | continue to innovate at a remarkable pace for their size
             | and age.
        
               | hourago wrote:
               | Apple was dying and it was only saved because Bill Gates
               | could not afford for Microsoft to become a monopoly so he
               | put the money. Apple lives out of it's duopoly with
               | Google on mobile phones. Or is Apple TV so successful?
               | 
               | Apple may not be a bad company but it has survived out of
               | pure luck.
        
               | AnimalMuppet wrote:
               | Apple survived out of pure luck _that one time_. It 's
               | executed really well since then, though.
        
             | hintymad wrote:
             | Apple and Microsoft? 3M too. Nokia used to invent itself
             | multiple times too, but I guess not any more.
        
         | hourago wrote:
         | > But I don't mean that happens because of their age, but
         | because of how long they are in the company and also how
         | comfortable they are with all the non-sensical processes and
         | red tape that company has (internally we called it IBM -
         | International Bureaucracy Monster).
         | 
         | Blaming all the people that has been long in the company
         | without individually evaluating their performane is bad and
         | lazy management. To target people by age, as only older people
         | can have been so long in the company, it's discrimination on a
         | protected class.
         | 
         | Are you really justifying firing people indiscriminately based
         | on age, or other proxy parameters like decades working for the
         | company?
        
         | rexreed wrote:
         | IBM has stalled because it stopped innovating, and instead
         | pushing highly cumbersome, expensive, consulting-centric
         | "products" that are nothing more than expensive services tied
         | to proprietary technologies. Where IBM isn't proprietary, it
         | rests heavily on open source offerings that it has acquired
         | (RedHat). Ironically, it's IBM itself that is every much the
         | sclerotic "dinobaby" that it seems to dislike. Simply hiring in
         | a younger pool won't change that dynamic. If anything, that
         | approach is deeply cynical, and only makes sense when you
         | realize that IBM sees its growth in services and "solutions"
         | offerings that depend on large numbers of lesser-paid, non-
         | family bound "early professional hires" that they seem to
         | desire.
         | 
         | IBM placed bets on highly speculative "moonshot" programs like
         | IBM Watson (especially Watson Health) that failed, while
         | simultaneously failing to effectively compete in the growing
         | cloud-centric market. IBM could have been a realistic contender
         | in the Enterprise against AWS, Google, and Microsoft cloud
         | environments, but it instead opted for large-scale vendor lock-
         | in style approaches.
        
           | admax88qqq wrote:
           | I think you two are looking at two sides of the same coin.
           | 
           | IBM has stalled due to poor business decisions. But those
           | decisions are a symptom of bureaucratic system of IBM and
           | those who know how to navigate it.
           | 
           | You can't divorce the actions of a company from the people
           | who constitute the company.
        
             | rexreed wrote:
             | It's true you can't disconnect the decisions of the
             | business from the ones making those decisions. But you also
             | can't hire your way out of current problems, especially
             | hiring lower in the organization and hope for change. To
             | completely reboot a company's decision-making culture by
             | way of importing new people without a complete reboot of
             | leadership is very difficult. And even if you could
             | completely replace everyone in the organization from the
             | very top to the very bottom (which is an impossibility),
             | you're still left with the legacy of existing customers and
             | technology as well as your brand and reputation and
             | relationships. Simply put, changing people is not a
             | solution to these problems. People and decision-making
             | relate to each other, but as time goes on, the ability for
             | one to impact the other without regard to the existing
             | impedance in the organization and market is limited. This
             | is part of the Innovator's Dilemma
             | (https://en.wikipedia.org/wiki/The_Innovator%27s_Dilemma)
        
               | humanwhosits wrote:
               | They could flip the relationship with Red Hat and let
               | them run the show
        
               | [deleted]
        
           | rusticpenn wrote:
           | Current employee here. They have identified and are focused
           | on changing this. IBM is moving towards technology provider
           | role (from consulting focus). This is also reflected by the
           | new CEO who comes from research background and was the main
           | person pushing towards buying of Redhat.
        
             | tbihl wrote:
             | I'd be very excited to see any such change come to pass, as
             | an employee of a significantly larger, older, and even more
             | bureaucratic organization.
        
               | rexreed wrote:
               | The US Government?
        
               | artificialLimbs wrote:
               | Or AT&T.
        
               | tbihl wrote:
               | That's the one.
        
             | mech422 wrote:
             | yeah - we were accquired as part of their 'cloud services'
             | shopping spree... so far, it seems like they're TRYING to
             | drive off the very people they acqui-hired. Contracts seem
             | more like a Tata level staff aug. then a 'professional
             | services' play.
        
             | rexreed wrote:
             | The forces of resistance to change and the pro-services
             | culture at IBM are strong. Very strong. See how far the
             | desire and will to change goes when placed up against the
             | marketing and sales culture at IBM and pressures from the
             | market.
        
               | jldugger wrote:
               | > The forces of resistance to change and the pro-services
               | culture at IBM are strong. Very strong.
               | 
               | Well yea, most of their headcount is consultants now,
               | right? Corporate America might not be a democracy but
               | neither can executives change the culture by edict.
        
         | tims33 wrote:
         | Agree that there is a way to have a healthy company with
         | motivated, engaged staff without targeting employees based on
         | their age. IBM has been broken for so long. They'd be best off
         | spinning RH back out and just selling everything until they're
         | just a mainframe company.
        
       | dehrmann wrote:
       | > contains emails that discuss the effort taken by IBM to
       | increase the number of 'millennial' employees.
       | 
       | This _could_ be OK if your workforce is fewer millennials than
       | you 'd expect. I know the federal government has issues with this
       | for tech workers because pay is lower than industry and its
       | policy on cannabis.
        
       | dangus wrote:
       | IBM should be on everyone's "never work here" list along with
       | companies like Amazon and Oracle.
       | 
       | In my opinion, IBM only cares about patents, not actually solving
       | any problems or accomplishing anything.
        
         | jobu wrote:
         | According to a coworker that had worked at IBM for a couple
         | decades it was a great place to work until sometime in the mid
         | 2000s. It was like they suddenly noticed how shitty Oracle was
         | and decided that was the business model they needed to follow.
         | Labeling older employees as "dinobabies" is a perfect example.
        
           | floren wrote:
           | I visited IBM Austin a few times circa 2009-2011 to
           | collaborate with an IBM employee on a project. Huge campus,
           | absolutely completely dead at all times. I would come in
           | through the main entrance, go past the security guard, and
           | see nobody at all until I arrived in the lab space. The lab
           | itself was a large workspace with all sorts of desks and
           | project space, but the only employee in there was the guy I
           | had come to see. Absolutely bizarre and an incredibly
           | depressing place to be.
        
             | diob wrote:
             | On the flip side, I had fun just walking around the giant
             | empty buildings during my coop. But yeah, very bleak.
        
             | green-salt wrote:
             | Exact same thing in their Boulder, CO office. Dead. Middle
             | of the day on a weekday.
        
               | mattlondon wrote:
               | I used to work at IBM in the UK in the mid 2000s and this
               | was fairly accurate at the UK offices too.
               | 
               | We'd joke that IBM stood for I'm By Myself as people
               | would work from home 90% of the time - many would be
               | mysteriously uncontactable/AFK during that time due to
               | "unforseen circumstances" (theat seemed to happen _all
               | the time_ ) ... it was very hard to get hold of people
               | when they were WFH.
               | 
               | No regrets - it was a great start for me, but I am glad I
               | left.
        
               | vpb wrote:
               | Remote working was quite common in IBM when I worked
               | there, ten-ish years ago. I stepped foot in an office
               | only a handful of times.
        
             | stevenwoo wrote:
             | I co-oped at IBM Austin from 1986-1987, there were some
             | pretty vacant spots then, too. One time a fellow co-op and
             | I followed some full times around to explore and got stuck
             | getting snacks in a break room because our keycards didn't
             | unlock the door to the rest of the floor (kind of a fire
             | issue there in hindsight) and we had to wait 10 minutes for
             | someone to let us out.
        
           | jmspring wrote:
           | I knew researchers at IBM Almaden. They would avoid going in
           | or duck out when the bean counters were around. The idea was
           | to not draw attention to one's self and one's project for
           | fear of being cut.
           | 
           | At the time, IBM also had a very strong focus on either
           | hiring from east Asia or outsourcing / rerouting work to
           | such.
        
           | rexreed wrote:
           | That's when they went all-in on professional services as
           | their primary go-to-market, chasing high buzzword quotient
           | stuff that was meant to capture services revenue and lock
           | into proprietary software. Remember WebSphere?
        
           | georgeburdell wrote:
           | I had a professor in the mid-2000s who always had to get a
           | jab in at IBM because he had worked there in the 90s
           | (somewhere in Florida) and hated it
        
         | diob wrote:
         | I did a coop there during college. They took a month to get me
         | a laptop. Then gave me 0 direction or tasks. At graduation they
         | offered me a full-time position. Yeah, nah.
        
         | bedast wrote:
         | I have extensive experience with IBM products, and I can say
         | their products, these days, are garbage. My last experience
         | (with PDTX) was so bad, I literally removed all mentions of IBM
         | products from my resume. It's been almost a decade and I still
         | get recruiters with old copies of my resume hitting me with
         | stuff for management of IBM stuff, and I immediately delete
         | those communications. Never again.
        
         | GuardianCaveman wrote:
         | Plus the whole Nazi / holocaust thing
        
           | LinuxBender wrote:
           | Consider adding a link [1] as many people may not know what
           | you are referring to.
           | 
           | [1] - https://en.wikipedia.org/wiki/IBM_and_the_Holocaust
        
         | BeefWellington wrote:
         | Having worked there, I disagree.
         | 
         | Even if it's only to learn what it's like to work at a big
         | place like that, it is highly instructive. Let alone the number
         | of connections you can make that will pay dividends down the
         | line.
         | 
         | They also do a lot of research, which remained a mainstay of
         | the company years ago when I was there and I don't see that
         | having changed. I think people underestimate how much that
         | contributes to the perceived slowness and stuffiness of the
         | company. When you have an entire research division working on
         | the edge of physics, that means a lot of academics, and your
         | company by necessity doesn't fit the mold of other tech
         | companies. Indeed, most of the newcomers seem to have tried to
         | copy this model.
         | 
         | IBM "only cares" about its investors. Patents are a means to an
         | end there for sure but while I was there they claimed the
         | patent portfolio that was primarily aimed at being defensive.
         | Whether this is true or not I have no idea but I don't see a
         | ton of IBM in the news as the plaintiff in patent lawsuits.
         | 
         | As a company they have a lot of captive clients and are deep
         | into some areas other companies just can't get into reliably,
         | so you sometimes get work opportunities you wouldn't elsewhere.
         | 
         | The red tape and bureaucracy is awful and the way they tighten
         | the belt every time they underperform for a quarter left a bad
         | taste in my mouth; definitely felt run more by accountants and
         | business people than engineers.
        
         | Justin_K wrote:
         | Oracle pays great and has great benefits.
        
         | subsubzero wrote:
         | agree, those are good ones, I would add facebook as well to
         | that list.
        
         | ido wrote:
         | I have a few friends working (or having worked) at amazon and
         | quite happy (especially at AWS). I don't think they're in the
         | same bucket as IBM and Oracle.
        
         | throwaway98797 wrote:
         | they make a lot of money
         | 
         | they pay pretty well
         | 
         | there are worse companies to work for
        
           | lotsofpulp wrote:
           | They have been earning less and less profit for the past 10
           | years, a time during which almost everyone else experienced
           | explosive growth. That is going to make for poor quality of
           | life at work.
           | 
           | https://www.macrotrends.net/stocks/charts/IBM/ibm/net-income
        
         | bestcoder69 wrote:
         | The patents that they showcased when I was there were so funny.
         | Truly quantity over quality.
         | 
         | My favorite was a patent for a mobile phone password input box.
         | The innovation was that as you type your password, your phone's
         | rotation (I think it was just 4 possible rotations) was
         | recorded per-character as you typed. So hunter2 might be
         | encoded as "h-0deg u-90deg n-270deg..." etc.
         | 
         | I love imagining Apple starting to develop this for iPhones
         | until one of their lawyers delivers the bad news.
        
       | mattlondon wrote:
       | They did this by proxy in the UK by ruining the dinobabies'
       | (decent) pensions unless they quit - if they quit they get to
       | keep the pension, if they stay they'd be throwing away
       | significant sums in pension.
       | 
       | Only the older IBMers had these decent pensions, so there was a
       | huge loss of older IBMers who understandly just quit rather than
       | miss out on their gold-plated pension.
       | 
       | Ironically many were rehired as freelance contractors (by their
       | individual projects, not "centrally" if that makes sense) on
       | significantly higher rates, so they got to keep their pension,
       | keep their job (as a contractor) and get a pay rise too. The
       | millennials meanwhile were kept on low salaries (it was the main
       | reason I quit )
        
       | JoeAltmaier wrote:
       | Has IBM changed? My cohort of graduates in the 90's found them
       | stuffy, extremely cautious and change-resistant. One fellow in my
       | graduating class was chastised for wearing a shirt that wasn't
       | IBM blue - "I understand you're trying to make a statement," (he
       | wasn't) "but you won't fit in around here unless you make an
       | effort."
       | 
       | He was told when he quit to join a startup "You know you will
       | never work at IBM again?"
       | 
       | What a dinosaur.
        
         | jiveturkey wrote:
         | Has it changed? You're talking about the 90's. That's 30 years
         | ago. Of course it's changed.
        
       | theplumber wrote:
       | I have a hunch though that IBM employs more old people than any
       | other big tech company (i.e apple, facebook, google etc). At some
       | point the old generation should step aside to make space for the
       | new or the company itself will die just like its employees.
       | 
       | It's no secret that after a certain age you stop chasing big
       | dreams and just want to do more of the old things/job which is
       | not a competitive strategy for a company.
        
         | speed_spread wrote:
         | > after a certain age you stop chasing big dreams
         | 
         | I have "certain age" and must strongly disagree here. Those who
         | stop never were big dreamers in the first place, or had their
         | morale crushed by eternal bad management. "Age" itself is not a
         | factor. If anything, age gives confidence, wisdom, focus and
         | autonomy to pursue one's goals.
         | 
         | Age also means you also realize that you're gonna die one day
         | (soon) and that you'd better get your shit together if you're
         | gonna have any kind of meaningful impact within the short
         | timeframe you're alloted on this ball of mud.
        
         | LinuxBender wrote:
         | I'm an old fart and I embrace new ideas assuming they have been
         | well thought through, allowed for documented feedback from old
         | stodgy curmudgeons like me and are not putting the company,
         | customers or investors at risk.
         | 
         | That said I can understand why you are saying that. Some
         | organizations do permit people with high tenure to paralyze a
         | companies innovation and I do not know how to fix that short of
         | creating competition and importing the good employees at the
         | new competition.
        
       | downrightmike wrote:
       | They should extend protections to younger workers too. IBM has a
       | lot of dirty tactics that wouldn't be legal if the workers were
       | slightly older.
        
         | kube-system wrote:
         | That's more difficult, practically speaking, because youth
         | often correlates with inexperience.
        
           | bee_rider wrote:
           | There are real business reasons not to invest in younger and
           | older employees, why should we just protect one group? (we
           | should protect both! Or better yet, everyone, no need to have
           | some ever-narrowing gap around like 35 of unprotected
           | people).
        
             | kube-system wrote:
             | I'm not saying you shouldn't. I'm saying that you might not
             | be able to practically do so. Anyone who doesn't want young
             | employees will just `s/young/inexperienced/g` and thwart
             | your law.
        
         | geodel wrote:
         | Also for middle aged workers. They are quite vulnerable lately.
        
         | paxys wrote:
         | Age discrimination laws in the US only apply for older people.
         | A company can legally discriminate against someone for being
         | young and they can do nothing about it.
        
           | hoppyhoppy2 wrote:
           | I think that's exactly why the parent commenter would like
           | those protections extended to other age groups.
        
         | swagtricker wrote:
         | Define "slightly older". The US Equal Opportunity Employment
         | considers you part of the protected class against age
         | discrimination if you're over 40 (see https://www.eeoc.gov/age-
         | discrimination). Let's be honest, 40 is pretty much considered
         | the entry point into "middle age".
        
       | Terry_Roll wrote:
       | If IBM have done what every other major business seems to have
       | done when GDPR came into effect, they will have burned anything
       | and everything.
       | 
       | This will be interesting.
        
       | tyingq wrote:
       | Interesting, as they went through this before, in 2006, with a
       | memo calling experienced workers "oldheads".
       | 
       | https://features.propublica.org/ibm/ibm-age-discrimination-a...
        
         | nwsm wrote:
         | I don't know anything about that case, but "oldheads" is
         | typically a term of endearment
        
         | [deleted]
        
         | _jal wrote:
         | Seems like you need to run a herd of McKinsey suits through
         | your paper trail once a decade or so to really get away with
         | this.
        
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