Amgen Signs with IBM

Let the layoff begin...Finally Amgen signs with IBM. SO now the layoffs will begin,,,, SO what color will your badge be?

 

So the IT ppl get 12 weeks and 2 weeks COBRA if they decide not to apply with IBM/AT&T. Now the best deal is if you don't apply and don't get accepted if as you can get 24-48 week + 1 week/year or if they don't have a position for you...

Today, they gave notice to most IT staff that their jobs were eliminated as a result of the outsourcing. Some staff were notified that they would be retained. No discretion as to which staff were kept except that they all seem to be the loudmouths without the knowledge to support the business. Loud stupid people at the core of IT.

Amgen handily beat earnings so it's time to outsource to handily beat the next time of earnings. Since when did it cost $100 million a year for IT. Time to SHORT!!!

 

This just goes to show you how STUPID Amgen's management is. Picking IBM/AT&T really aligns with the current infrastructure at Amgen. Amgen's strategic IT partners are/where HP, Microsoft, NetApp storage, EMC storage, and Verizon Business as the network.

ERP is based on SAP which IBM raped Amgen during the implementation to the tune of $250M, and are now going to continue raping Amgen in supporting ERP.

Before you know it, Amgen will be on Lotus Notes and back on the AS/400.

It's good to be an IBM shareholder!!!

 

Ventura County Star, Sat. Dc 6 2008, p a14

Amgen to cut 64 jobs in computer support

THOUSAND OAKS -- Amgen Inc. is outsourcing its information system services to IBM and will lay off about 64 employees at its Thousand Oaks headquarters, according to a notification letter sent to the county Human Services Agency.

Amgen contracted with IBM on Oct. 22 to take over the services in the coming months. The five-year agreement, which can be renewed for up to eight years, will cost the company $500 million for the first five years and possibly as much as $800 million.

Amgen reports it will have a "permanent mass layoff" at its headquarters from Jan. 30 to Feb. 13. In its notification letter, which must be filed with the state Employment Development Department under the WARN (Worker Adjustment and Retraining Notification) Act, the company reported that it intends to provide career transition services for displaced employees. The letter was sent Nov. 26.

 

The more and more I hear from people, this deal smells like rotten fish in upper management's pockets. IBM isn't assuming crap. It's for everything that is up and coming. No assuming of maintenance nor depreciation of current assets. There is NO cost savings in this deal, it's all added expense to current costs. Also it's to bring on someone who doesn't understand Amgen's business so IT management has someone to blame when shit hits the fan. Can you say, "Unisys helpdesk?" Oh joy, to see Tommy boy run down the hallway when the meltdown occurs.

 

If you haven't heard, as of Friday, January 30th, 2009, Amgen laid off their entire IT Operational Staffs and outsourced them to IBM. As of today, it's a MESS!!!

 

So, after IT Layoff Round III, let's do the arithmetic.

About 100 folks were let go in June. At an average cost of $150K/year each, that saved $15MM annually.

TF convinced Amgen to pay IBM $100MM/year to run infrastructure, a dept that cost about $55MM/year. He needs to recover $45MM in operating costs.

$45MM - $15MM = $30MM. $30MM / $150K / person means TF needs to RIF about 200 more people in order to break even. Small layoffs of 50 to 100 here and there won't trigger a WARN notice, so it's easy to do. Bump the fully loaded cost to $200K/year, and you get 150 more RIFed.

Long story short: expect another 100-200 IT layoffs during 2009.

 

Are there even that many pple left in IS infrastructure now after all the RIFs/

 

wow - another director flys the nest.

 

Who's the latest?

 

TG - i believe. btw hows IBM doing with the whole outsource thing??

 

TG was a really good one too!

How do you think they are doing? Amgen is going to end up regretting this deal more and more every day! Its also going to cost them more when they find out half the stuff they used to get is not in the contract!

 

anymore IS folks let go today?

 

Just had to revive this old thread. Now that transition has ended, and transformation is in full swing, the complete arrogance and ineptitude of IBM is showing through. The tools that have been implemented are absolutely horrible while, at the same time, do an excellent job of violating about 5-10 industry best-practices and regulatory expectations (FDA and SOX).

They have also done a spectacular job of showing everyone that the Unisys Help(less) Desk was actually NOT the bottom of the barrel. And while SK is still an idiot for leading the program that exposed everyone to their incompetence, it was really not "the worst solution ever" like so many people had complained. In fact, the IBM Service Desk is so bad that I have heard that DM and CN are going to go to India to see it first hand. Oh to be a fly on the wall after THAT trip.

For now, though, I'll just sit back and enjoy the warm glow of the Schadenfreude as IBM shows Amgen the true depth of the stupidity of TF's decision. I wouldn't be surprised if the contract were terminated and Amgen had to go out and fill a bunch of the gaps left from all the talent they hemorrhaged over the last 18 months. In fact, I'd probably wet myself and giggle like a little school girl if that happened.

 

Agree that this was a dumb decision. Ever call IBM for help? Good luck. Whoever signed this deal should be fired. Not just the fault of TF, he takes direction of his people. He should be held accountable if he has a bunch of 'yes men' surrounding him.

The folks within Global Strategic (are you kidding me - they couldn't implement baking a cake if they had to) Sourcing group need to share in the blame. The metrics are horrendous. IBM closes tickets that have no business being closed. Why, b'c that is how they are judged.

Takes weeks to get what used to take a day.

Outsourcing @ Amgen is hated. Not b'c it doesn't work. It is hated b'c you have nobody there with any experience outside of Amgen who has done it before. Amgen's arrogance again - they think their way is the best way. To preserve their dysfunctional culture.

Wake up - the glory days are gone.

 

Been trolling this site for the first time (I work at another Pharma not Amgen) and it is just the same everywhere. Outsourcing to Asia is the silver bullet that management sees. In fact they rarely see much else. I have concluded that IT is just too hard for the management types to handle so they just give up trying, hoping they can write a check instead of doing IT work.

To all my IT colleagues out there... "hang in there".

 

Holy sh*t, I am sorry. I work at another pharma that outsourced IT support to IBM, and it has been an unmitigated, complete disaster. Seriously, hire a bunch of monkeys from the zoo for your helpdesk, you'll get the same level of support as you would from IBM, but you won't be mad, because hey, they're monkeys.

Get used to tickets getting closed for no reaosn, that abortion of a piece of software Remedy, and nothing but an endless runaround of blame while nothing gets done.

 

Holy sh*t, I am sorry. I work at another pharma that outsourced IT support to IBM, and it has been an unmitigated, complete disaster. Seriously, hire a bunch of monkeys from the zoo for your helpdesk, you'll get the same level of support as you would from IBM, but you won't be mad, because hey, they're monkeys.

Get used to tickets getting closed for no reaosn, that abortion of a piece of software Remedy, and nothing but an endless runaround of blame while nothing gets done.

 

I heard that TF announced the end of the IBM contract in a meeting, today with DM and all her direct reports. Sounds like they are going to start in-sourcing earlier than expected, if there is anything left of IT. Anyone hear if they are taking AT&T with them?

 

I heard something similar. They're truly hosed now, though.

From my count, about half of the 2008 IT force is left, and of those probably another half work for IBM or AT&T. As bad as those companies are benefits-wise, I can't imagine that everyone will be chuffed to bits at the prospect of being able to work for Amgen again, given the fact that their perceived value to the company has been made pretty clear.

And then, of course, there's the document they all signed saying they WON'T go back to work at Amgen without approval from the EC (even as a contractor). Assuming Amgen wants any of those people back, I would imagine TF is going to have to stand up there and fight for every one of them (hell, if I were KS, I'd put him through the wringer after this clusterfuck).

As it is, they have lost so much talent and legacy knowledge, it's going to take a long time for them to recover. And the business suffers, all the while.

I think it's time for TF to collect his gold watch and retire somewhere.