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IBM Hides the Bodies, Eyes US Government Billions
theodp writes "As his company was striving to hide the bodies of its laid-off North American workers, IBM CEO Sam Palmisano stood beside President Barack Obama and waxed patriotic: 'We need to reignite growth in our country,' Palmisano said. 'We need to undertake projects that actually will create jobs.' While Sam positions IBM to get a slice of the $825 billion stimulus pie, Big Blue is quietly cutting thousands of jobs and refusing to release the numbers or locations, arguing that SEC disclosure rules don't apply since the US job cuts are immaterial in its big global picture. The layoffs included hundreds in East Fishkill, coming early in the year after NY taxpayers paid IBM $45 million not to cut additional jobs in East Fishkill in 2008. Some are questioning whether IBM incentives are worth the cost."
Ever got fired for workign for IBM...
It is far better to cut off a dying limb than to have the infection seep back into the whole body.
If the division was in such a pathetic state that the state had to beg IBM not to cut it in good times, is it any surprise that IBM decided to cut it in the bad times?
Business isn't charity, no matter what those enlightened European countries may believe.
this is why using tax payers money to solve private businesses problems is never right. at most issue low interest short term loans to ease cash flow issues. never just wholesale billion dollar give aways because it'll slide right into the CEO's and exec's pockets.
If you mod me down, I will become more powerful than you can imagine....
...to the pork barrel highboard, his company has been making billons for decades, but thinks it can screw some more in 'this time of need'.
He steps over the bodies of the fallen, leaps into the air and does a perfect belly flop into the barrel, with a belly laugh for effect - he'll get good style marks for that.
Sixes from five of the judges,only a 5.7 from China and billions for a wealthy corporation! Sam's gotta be pleased with that result.
If he's the Walrus then can I be a penguin please?
Last time they left bodies in their wake, the Allies found most of them...
If we can put a man on the moon, why can't we shoot people for Apollo-related non-sequiturs?
http://www.ibmandtheholocaust.com/
Even in the linked article, they're only questioning how much to pay IBM -- not whether to pay them. It amazes me that local officials do this so often, when there's no real proof these sorts of incentives are a net gain. Localities pay hundreds of millions of dollar for sports team's stadiums and get no direct profit sharing, cities offer multi-million dollar packages - or in Seattle's case, even build an egregious trolley line - for businesses and don't even pretend to have a measure of the monetary benefit to the community for the given initial outlay. I always wonder how much these pointless incentives come from honest incompetence versus corruption of the government officials.
So is IBM the bad guy now I just need to know before I comment.
Jonathanjk.com
...they're so disorganized and flat-out dishonest with their employees that I say screw giving them any incentives, stimulus, or any other kind of special help. They need none.
All IBM has done since Gerstner is coast, layoff, reorg, and outsource. No significant new technology, major divestitures (heck, we sold off our entire networking arm to AT&T). The first thing Palmissano did in his video address after taking over as CEO is tell sales "don't let the engineers tell you no". Great idea - it led to vaprous announcements, selling technology we couldn't produce, and atrophied all of our internal systems, investment, and talent. Growth targets are consistently at bubble levels to ensure no one gets reasonable bonuses, and in the lead up to the firings in Fishkill managers were told to downrate employees on their PBC's to limit severance payments.
And no, I wasn't one of the ones laid off. If I had a better nest egg I might welcome it, freeing me from that blasted place. In the meantime, I have a family to support...
Did you ever think that these huge corporations would perform just as well, or even better, if top executives didn't exist, or just never did anything? So, if the company has good products and the economy is good, it prospers. And if the economy is bad, or the products are bad, the company suffers. That's what a company without top brass with golden parachutes, would do. The absurdly overpaid executives should be the ones who can turn a company around, whose leadership actually makes a difference.
But, as we could see with the big 3 car manufacturers and basically every big publicly traded company (in private companies you can bet your sweet ass that there's an owner that will keep an eye on the managers), executives don't do a lick of a difference. When times are tough, these companies tank - and ask for bailouts.
It's a bailout for incompetence, and Obama's administration would be foolish to support them. But it's too late - from the way the big 3 car manufacturers have been bailed out, I see more incompetence being rewarded.
"The agriculture ministry is not in charge of Gundam" - Japanese ministry official.
The incentives don't appear to work as several states have already found out. Invariably, companies receiving these incentives do not hold up their end of the bargain. And yet this practice continues. This is a kind of socialism too. Where's the outrage?
Wansu, th' chinese sailor
This is the problem when government does not place restrictions on a bailout package. Our government wrote a blank check on us to bailout the results of extreme corporate greed and stupidity. It was incredibly assinine to think that trading mortgages like securities was a good idea. And, now, Uncle Sam turns around like the patient older parent and says, "Oh it's okay .... we forgive you .... here is an 820b allowance." This money should *not* have gone to corporations but should go towards keeping people in their homes. This is the key to beginning recovery. I must say that I am severely disappointed in Obama not seeing this fundamental fact. We should have let these greedy corporations fold under their own weight. We have set a dangerous precedence now for future troubled economic times wherein corporations can say, "Hey, you helped us before!", as an argument for more welfare.
I just don't understand why any American wants to work for IBM. Granted, these days, any job is godsend. But in a year or so, this recession will be over and IBM will probably start growing again, like other tech companies. I have little respect for any American who accepts a job at IBM, given a choice. Years ago I used to work there, and I never got the sense that IBM appreciated its American workers.
And the men who hold high places must be the ones who start
To mold a new reality... closer to the heart
Man, the way they keep printing that money, I'm not really sure if I want to work for it any more. I mean, what's it going to be worth in 5 years? Why bother?
I'm going to make a still and go back to bartering. This money stuff is a total rip off.
-1 Uncomfortable Truth