On Monday, Governor Cuomo lauded IBM for keeping 3,100 jobs in the Hudson Valley and adding 500 in Buffalo. On Thursday, IBM carried out yet another round of lay-offs in the US, including Poughkeepsie and Endicott NY. No speeches from the Governor on that.
Endicott, the birthplace of IBM, is just across the Susquehanna from me. In a perverse twist on decimation, IBM now employs less than 10% of the people it once did in Endicott. Decimation would be knocking out every tenth person; instead, IBM has knocked out nine, (usually) keeping the tenth.
It’s happened over time. Sometimes, IBM sold a division to another company. The workers get transferred to the other company, but their employment there doesn’t tend to last very long because the new company wants the contracts, not the experienced workers whom they deem too expensive. Other times, IBM off-shored the jobs. It adds insult to injury to have your last weeks of work spent trying to train a new grad in India to do the job for which you spent years developing your skills. In recent years, it seems to be that corporate America’s answer to everything is to cut costs to drive up the earnings per share, regardless of what this does to your ability to deliver quality products on time. There are only so many cuts you can make before you run into difficulties with not having enough skilled people to complete the job, even though the remaining workers do lots of (unpaid) overtime.
In Endicott, the situation is exacerbated by the fact that IBM has not done much hiring here in the past 20+ years. Most of the cuts now involve workers with over thirty years of experience, who wind up being bridged into retirement. What goes with them are critical skills and knowledge base which haven’t been able to be transferred to younger workers because there aren’t many around.
IBM’s mantra for decades was THINK. The corporate leaders seem to have forgotten that. IBM made its name because it was loyal to its workers and they were loyal to IBM. IBM invested in their training and well-being and the employees innovated, obtained record number of patents, and made great products. IBM on a corporate level is making itself into just another company chasing some number for the next quarter and not thinking about the long-term future for themselves, their employees, the communities, and their customers. Will they remember their heritage before it is too late?