Former IBM CEO Lou Gerstner passes, aged 83

Summary

Lou Gerstner, the executive credited with rescuing IBM in the 1990s, has died aged 83. Appointed CEO in April 1993 as an industry outsider, Gerstner refocused Big Blue on customers, integrated siloed units, and built IBM Global Services. His decisions — including major acquisitions such as Lotus and Tivoli, and opening IBM software to non‑IBM platforms — helped reverse steep declines and drive significant revenue and share price recovery during his tenure. He left in 2002, later concentrating on philanthropy and board work.

Gerstner came to IBM after senior roles at McKinsey, American Express and RJR Nabisco. He is remembered for shifting IBM away from inward, hierarchical decision‑making toward customer‑led execution, while also presiding over large job cuts and strategic choices that ceded ground in areas such as PC operating systems and x86 servers.

Key Points

Gerstner became IBM CEO in 1993 and is credited with turning the company around from the brink of collapse.
He emphasised customer focus, simpler meetings and fact‑based decisions, famously telling staff “Let’s just talk.”
He integrated IBM’s business units, expanded employee equity participation and launched IBM Global Services, which became a major revenue driver.
Major acquisitions under his watch included Lotus (1995) and Tivoli (1996), to expand software and services capabilities.
Gerstner rejected internet hype, prioritising long‑term business fundamentals over dot‑com valuations.
His tenure included large workforce reductions and strategic moves that later allowed rivals (Microsoft, Dell, x86 vendors) to surpass IBM in several markets.
After leaving in 2002 he focused on philanthropy, education and board roles; he received an honorary knighthood during his time at IBM.

Why should I read this?

Short answer: if you care about how big tech companies get rescued (or remade), this is the blueprint. Gerstner wasn’t flashy — he cut through corporate nonsense, reorganised IBM around clients, and made hard calls that reshaped the IT industry for decades. It’s a neat capsule of leadership lessons, strategic wins and costly trade‑offs, all in one obituary.

Source

Source: https://go.theregister.com/feed/www.theregister.com/2025/12/29/lou_gerstner/