Many credit Gerstner with saving IBM and keeping it together.
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As Sylla put it, companies began to "Forget about the workers. Build your factory in Mexico or someplace else where labor is cheaper," became the thinking. In the '80s, management tried to protect the mainframe business against new competition from PCs. By the early '90s, IBM was running out of cash.
There was talk of splitting IBM into pieces. Gerstner, who came from RJR Nabisco. Gerstner said Watson told him to take whatever steps necessary to get the company back on track.
But in many ways, the steps Gerstner took were a repudiation of the values Watson outlined in the 60s. Gerstner declined interview requests. In more recent years, critics contend IBM has moved into the financial engineering business, generating profits with financial strategies such as buying back its stock.
IBM then, in , did the unthinkable: Sixty thousand workers had to go. Even for workers who knew the company was in bad shape, it was a tough day. But around the office, that famous IBM dedication was fraying. Many credit Gerstner with saving IBM and keeping it together. To get there, Gerstner said, in effect, that IBM needed to look more like its peers.
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