Conference 7.286::digital

>    """"IS DIGITAL GOING TO DO THE SAME ???????"""""""
    
    Why would we?
    
    In the field, at least, I have yet to hear any complaints that we
    are a top-heavy organization and/or that we are overstaffed.
    
    I can't recall any Wall Street-types stressing the need for Digital
    to reorg the workforce or cut employees.
    
    IBM *is* top-heavy.  It's the outgrowth of a strict hierarchical
    org-type.  Digital seems far less so (from my lowly estate, at least).
    
    Anyone (especially in MA) hear differently?
    
    -- Russ

The journal article also had a comment, attributed to an unnamed IBM
source that, although they were <redeploying> 15000 staff people to
the sales force, they privately hoped most (or many, don't remember)
would quit.  it went on to say that this is the closest IBM has come
to violating its no-layoff policy, and that may of the cuts will come
by consolidating divisions, thus cutting the need for staff jobs. The
Boca Raton FL wing of the PC division will be consolidated with the
rest of it in Austin. TX 


[Perhaps when the guys in Boca complain, they will be asked "but what 
have you done for us LATELY"] :-)

    From todays Lawrence (MA) Eagle Tribune:
    
    IBM changes may cut 4,000 jobs
    
    NEW YORK _ IBM has announced a $600 million consolidation plan that
    it says probably will lead to the resignation or retirement of 3,000
    to 4,000 employees.
    	IBM said yesterday it would cut 1,600 jobs in Boca Raton, Fla.,
    the birth place of the origional Personal Computer, by eliminating
    manufacturing there, and 2,800 jobs in Tucsun, Ariz., where it will
    phase out manufacturing of data storage products.
    
    --------------------------------------
    
    IBM has done this before. I don't remember DEC doing anything
    like it on that large a scale let alone doing so to match IBM. 
    
    			Alfred

RE: .2 today's Journal had the official announcement - Boca is being
moved to Raleigh NC, and, in an attempt to remove 3000-4000 employees,
"many of 10000" are being offered "lucrative packages to leave the
company".

In the UK, staff reduction is implemented in a more subtle way;

Low ceiling on salary budget (5% last year) compared with Thames Valley
salary inflation rate of 9%.

(Thames Valley includes Reading, Basinstoke, Newbury, Theale, Winersh and
Heathrow offices)

Hiring restrictions mean managers will try and stop internal career moves for
fear of not being able to replace staff.

Dave.

    I'm curious why the author of the base note is asking why DEC would
    be considering the same steps for redeploying the workforce as IBM?
    
    Are there indications floating about the are hinting towards an
    early retirement program or retraining for sales?  DEC has the STRIDE
    program which is used when a site is either closed down or put into
    mothballs for a while.  An example is Franklin, MRO and Pheonix.
    From what I've heard by talking to people at those sites, most people
    were retrained from manufacturing jobs to other comperable positions
    within the corporation.  Most likely computer operations since there
    is always a need for qualified operations personnel.
    
    Isn't STRIDE pretty much the same thing as what IBM is doing...again?
    
    
    Bryan

    
    
    	The employee count to revenue ratio is currently a hot item
    in financial analysis.  SUN and Apple's, for example, are pretty
    low- but they are still, comparitively speaking, niche vendors.
     As an organization grows to be a full-service vendor, internal
    complexity grows, and the ratio suffers.  It seems the more
    specialized you are, the leaner you can be.  IBM has tons of
    stuff they have to support, since they are in all kinds of
    markets.  Digital is somewhere in between.
    
    	Remember, the reality of what it takes to run a business isn't
    necessarily a factor- perception is everything.  And it's
    perception on the part of Wall Street analysts that sometimes
    makes or breaks a stock price- and not just the company's
    actual performance
    

    A friend of mine who works in Poughkeepsie told me the other day
    that the rumor is that IBM will offer $17.5K for each year that
    the employee has with the company for them to leave.  That's a rather
    lucrative offer for people with high years of experience.  He and
    his wife have about 12 years combined!
    
    
    If DEC were to offer the same thing, I'd seriously think about taking
    it, moving somewhere cheap and becoming a bartender (after all,
    no mortgage to pay, very little expenses)
    
    
    -bill

    Let's see, 24 years times $17.5K would give me $420K.
    I probably wouldn't become a bartender, but I could
    proabably change my name and come back to work for
    Digital at another site.

    According to the Boston Globe (30 June), eligible IBM HQ staff
    would be offered one month's salary for each year of service.
    Different offers were to be made to employees effected by the
    plant closings.

    Re >.6
    
    You are right except that STRIDE is gone.

    RE: .11
    
         Can you elaborate on that point?  What happened to STRIDE?
     What is the alternative if your group dissolves or your job is
    eliminated?
    
    
    Bryan

    Re: .12
    
	Not to sure, but I belive they placed everyone in STRIDE and 
    	than closed it. I belive each group have to do their own
    	things to place people, just like before STRIDE time.

    IBM is providing all eligible employees the opportunity to retire
    with the following benefits:
    
    4 weeks pay for ever year of service. the maximum benefit is two
    years pay (there is no $ limit). This is in addition to any retirement
    benefits the employee would receive.
    
    If the employee is from the Arizona or Boca Plants they would be
    eligible for Twp years salary PLUS $25,000.
    
    Additionally, expect to see some IBM executives looking elswhere
    since many high level general management jobs are being releveled,
    thus taking quite a few people off the "TRACK"
    
    
    PS. This is not rumor.

    
    This isn't just IBM. When my wife and I got married she had 7 years
    with DuPont in Wilminton DE. We moved down here to Washington a
    month later and she had to leave DuPont. About 2 months later we
    found out that DuPont was offering any employees 5 years of service
    if they retired. That would have given her 12 years and would have
    made her fully vested. 
    
    Oh, well. Timing is everything in this life, isn't it?