IBM CEO Rometty urges employees to act faster - report

Thu Apr 25, 2013 7:45am IST

IBM Chief Executive Officer and Chairman of the Board Virginia Rometty gives a speech to the Appeal of Conscience Foundation in New York September 27, 2012. REUTERS/Carlo Allegri/Files

IBM Chief Executive Officer and Chairman of the Board Virginia Rometty gives a speech to the Appeal of Conscience Foundation in New York September 27, 2012.

Credit: Reuters/Carlo Allegri/Files

Related Topics

Stocks

   

REUTERS - IBM Corp's (IBM.N) Chief Executive Virginia Rometty told employees the company had become too sluggish and unresponsive, after it posted weak first-quarter results, the Wall Street Journal reported on Wednesday, citing IBM's internal video message addressed to its employees.

The technology services company posted on Thursday a rare quarterly earnings miss as a sliding yen hurt earnings from Japan and it failed to close a number of major deals, especially in Europe and the United States.

Rometty set a new rule. If a client has a request or question, IBM must respond within 24 hours, the newspaper reported she said in that call. She addressed the call to over 434,000 employees worldwide.

"Where we haven't transformed rapidly enough, we struggled," Rometty said in the video published on IBM's internal website, reviewed by the newspaper. "We have to step up with that and deal with that, and that is on all levels."

IBM was not immediately reachable for comment on the report.

IBM blamed a poor performance by its sales force for some of the shortfall for the poor quarterly results. But analysts said it was not just one quarter - the company's sales have been weakening consistently, dragging down results with or without the changes in the yen.

Rometty said IBM needs to speed its shift to new computing models to get back on track, the Journal reported citing the video. (Wall Street Journal article: link.reuters.com/dah67t)

IBM also reassigned one of its most senior executives, the head of its computer hardware business, following a sharp drop in first-quarter sales at the unit, the Journal reported citing a person familiar with the matter.

(Reporting by Thyagaraju Adinarayan in Bangalore; Editing by Lisa Shumaker)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Alibaba IPO

Reuters Showcase

New iPhones

New iPhones

Apple faithful line up for latest, larger iPhones  Full Article 

Ellison Quits

Ellison Quits

Oracle's Ellison steps aside, co-CEOs Catz and Hurd take over.  Full Article 

Cutting Jobs

Cutting Jobs

Microsoft lays off 2,100 as part of earlier job cut plan.  Full Article 

Protecting Internet

Protecting Internet

Russia eyes measures to fend off Western Internet threat - Kremlin  Full Article 

Deal Talk

Deal Talk

SAP agrees to buy expense software maker Concur for $7.3 bln  Full Article 

Banking on PlayStation

Banking on PlayStation

Sony hopes for PlayStation profit boost as smartphones struggle.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage