Thread regarding Kyndryl layoffs

@35b 👍

I won’t say how, but there are ways of monitoring staffing levels and they are continuing to drop. Across the board massive cuts have been made and they are not stopping (in the near future). Colleagues I known have been given notice but they won’t finish till about October.

I hope that the company has blown through the money so I can sit on the bench for a year but I don’t think that’s an option any more 🤣

I believe the company will continue to get rid of people because that is the only way to balance the books. What I expect is that we will see “never ending” rounds of layoffs because Kyndryl are not winning the business that they need to.

Kyndryl is like a death through a thousand cuts. Kyndryl is like an elephant being constantly slashed. Eventually it will go down but because of the size it’s going to take a while.

Unfortunately, Kyndryl are not alone in this. Every large organisation is being hit. Global interest rate rises, AI, offshoring - it’s all hitting. Just take a look at the DXC shareprice and P/E ratio.

There is an argument that no matter how bad the economy is, there are always opportunities, however Kyndryl aren’t more agile than the competition.

Kyndryl has a redundancy plan affecting at least 24 staff in Luxembourg. https://today.rtl.lu/news/luxembourg/kyndryl-faces-union-backlash-over-bil-transfer-1992509753

@2nj We are from Europe, but Global team, used to be managed by two US located managers (gone fully), and overseen by one VP, UKI based (garden leave or sort of). In one of the 121 session the indian said that he will not block me if I want to pursue the career elsewhere.. The climate is grim.

@2k4 You describe what is happening to us at North America.

Management is being silently replaced by external indians. One comes first, settles a little. Then another one creeps in, as his right hand. Both know sh-t about the stuff, only bi--hing on us, pushing over, pushing for dates whatever it takes. No will ever to step in, negotiate at their levels, just pushing the sh-t down to slaves ignoring this a corporate with cumbersome processes, various owners. Just bi--hing on, because they know sh-t about what is what. Maybe they were hired to that. To make the live of the reports so cr-ppy so they give in and/or resign.

NOT YET!!

Many has 27/28 aug last day

@10r Might be the accrual only indeed. PS. the new and new Opentoworks on LIN surfacing slowly..

@10r they did not they said the charges will continue throughout fiscal 2027 so expect each month more hits.

@jt Booking the charges in one quarter does not necessarily mean taking the resource action/notifying employees, in that same quarter. I would not assume most layoffs have happened already.

No news in Canada.

@t0 Agreed. Looks to me like management is just managing its decline.

@rx I can confirm this, without these guys' linkedin posts or telling the peers, no one would know. All of them have last days in August. In FY24, there were public announcements, actions plans, now it is just as quiet as possible, the game of pretending to be a "startup" is over. Kyndryl is either almost or completely separated from client and technical perspective from IBM, just buying it's services, there is obviously no will to make it prosper on the long run.

I can confirm more management positions were cut this week. No communication to the team at all, no updates, no replacements.

@jt where did you get the information?

@jt as per PR: "Actions to streamline operations resulted in $152 million of workforce rebalancing charges, which are included in reported and adjusted results".
I am wondering if anyone can confirm that has materialized in separations (PxQ (severances) as how this line item was claimed to be used for per accounting. Or was it another Marty's gymnastic trick again? (?hiring VP folks)

Kyndryl has already burned thru about 3/4 of what it expected to spend on rebalancing. If true, I assume the bulk of that is done.

@fw Barking up wrong tree buddy here. C-level are not reading this forum. They have different plans. KD is now only recruiting VP level hires to have them sweet-talk clients and bombard them with sales pitches. To payroll those KD will fire some thousands hands on pros.

SEC investigation and cyber breach don't bode well for earnings or revenue growth...KD needs to grow, everyone else is......get the right talent in the right chairs!!!

Cant wait to see who gets cut next, it really is like a game of musical chairs!! Heehee!!

Some more Global resources have been notified going to the bench in 2weeks. CTA role globally got slashed too

No cut in August. Happen at September.

The next wave won’t happen until after earnings is my guess. Next week would make sense.

I keep seeing neutral or negative EPS forecast. With the ongoing SEC investigation - guess what - there are not that many chances to make the balance sheet look better. Layoffs will happen with every quarter end until the budget is used.