Man Saves IBM by Turning It From Dinosaur to Slightly Younger Dinosaur
KEY POINTS
- ā¢Lou Gerstner served as IBM's CEO from 1993 to 2002 during a critical financial crisis.
- ā¢He ended IBM's 'cradle to grave' no-layoff policy and shifted focus to customer needs.
- ā¢After IBM, Gerstner chaired the Carlyle Group and supported philanthropy in education and biomedical research.
Lou Gerstner, the Long Island-born, Dartmouth-and-Harvard-educated corporate juggler, passed away at 83. From 1993 to 2002, he piloted IBM through its 90s existential crisis when everyone assumed the tech giant would be dismantled like old Lego. Instead of letting the company implode, he scrapped the legendary 'cradle to grave' no-layoff policy (sending century-old traditions to their grave), refocused on customers (because who needs internal turf wars?), and pushed IBM toward integrated tech and services. Before IBM, he bounced between McKinsey, American Express, and RJR Nabiscoāproving executives truly enjoy a corporate hopscotch bonus. Post-retirement, he chaired Carlyle Group and dabbled in philanthropy, probably searching for ways to fix more problems with money he didnāt invent.
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Lou Gerstner saved IBM by breaking its own unwritten 'sacred cow' rule, proving corporate heresy sometimes actually works.
IBM in the 90s: a dying breed until Lou said, 'No breakup!' and fired tradition instead.
Lou Gerstner killed IBMās no-layoff fairy tale so the company could live to confuse tech on another day.
Source: Businessinsider | Published: 12/28/2025 | Author: Business Insider AI News Desk
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