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Lou Gerstner, IBM’s Turnaround Chief, Dies at 83

IBM plans a company celebration of his legacy next year after confirming his death without disclosing a cause.

Overview

  • IBM notified employees of Gerstner’s passing in an email from CEO Arvind Krishna and offered condolences to his family.
  • Appointed in 1993 as the first outsider to lead IBM, he rejected a breakup and recast the company as a neutral integrator centered on services and middleware.
  • His overhaul featured aggressive cost cutting, sales of noncore assets, roughly 35,000 job reductions, the end of OS/2, and strategic buys such as Lotus and Tivoli.
  • Services revenue rose from about $7.4 billion in 1992 to roughly $30 billion by 2001 as IBM’s market value climbed sharply during his nine-year tenure.
  • After retiring in 2002, he chaired the Carlyle Group and focused on philanthropy, while industry leaders including AMD’s Lisa Su shared tributes to his influence.