TL;DR
IBM has announced the death of Lou Gerstner, who took the helm in 1993 and guided the company through a major strategic shift toward services and openness. His tenure included major acquisitions, cultural changes and both significant growth and large job reductions.
What happened
IBM confirmed that Lou Gerstner, the executive credited with turning around the company in the 1990s, died on Saturday at age 83. Gerstner joined IBM as CEO in April 1993 after a career that included senior roles at McKinsey, American Express and RJR Nabisco; he later recounted his background in the memoir Who Says Elephants Can't Dance?. Faced with a company in financial and strategic distress, he pushed for a customer-focused culture, flattened internal processes and integrated previously siloed businesses. He created IBM Global Services, opened IBM software to run on third-party platforms, and pursued acquisitions such as Lotus (1995) and Tivoli (1996). Those moves helped drive substantial revenue growth and share-price recovery in the mid-1990s, though his tenure also saw widespread job cuts and the company cede leadership in several hardware and software markets. Gerstner stepped down in 2002 and subsequently concentrated on philanthropy and board work.
Why it matters
- Gerstner redirected IBM from a hardware-centric firm to a services-led model that influenced enterprise IT strategy.
- His emphasis on customer-focused decision-making reshaped internal culture and management practices at a major technology company.
- The acquisitions and openness policies he implemented helped IBM participate in the internet era while altering competitive dynamics.
- The combination of growth and large-scale layoffs during his tenure illustrates trade-offs in major corporate turnarounds.
Key facts
- Lou Gerstner died on Saturday at age 83, according to IBM.
- He became IBM CEO in April 1993 after roles at McKinsey, American Express and RJR Nabisco.
- Authored the memoir Who Says Elephants Can't Dance?
- He pushed to integrate IBM’s business units and broaden employee participation in stock options.
- Gerstner established and expanded IBM Global Services, moving the company into consulting and managed services.
- Major acquisitions under his leadership included Lotus in 1995 ($3.5 billion) and Tivoli in 1996 ($743 million).
- On his watch IBM’s revenue grew significantly—about $20 billion a year in the mid-1990s, per the source—and share price improved.
- His tenure involved tens of thousands of job cuts and loss of leadership in areas such as PCs, networking and processor design.
- He left IBM in 2002 and later focused on philanthropy and serving on boards; he received an honorary knighthood.
What to watch next
- Not confirmed in the source: whether IBM will announce formal public commemorations or dedicate initiatives in his memory.
- Not confirmed in the source: how IBM’s current leadership will reference Gerstner’s strategies in near-term corporate messaging or strategy updates.
- Not confirmed in the source: any resurgence of debate about the long-term effects of his decisions on IBM’s hardware and software market positions.
Quick glossary
- IBM Global Services: A business unit focused on consulting, systems integration and managed IT services that was expanded under Gerstner to offer technology and business strategy services.
- Acquisition: The purchase of one company by another, often used to gain technology, products, customers or market share.
- Dot-com: A term used for internet-focused companies, especially those that emerged during the late 1990s internet boom and often experienced volatile valuations.
- Stock option: A right granted to employees that allows them to buy company shares at a predetermined price, commonly used as part of compensation packages.
Reader FAQ
When did Lou Gerstner die?
IBM announced he died on Saturday; he was 83.
What are Gerstner’s most notable actions at IBM?
He reorganized the company around customer-focused services, expanded IBM Global Services, allowed greater openness for software and made key acquisitions such as Lotus and Tivoli.
Did Gerstner’s tenure have negative consequences?
The source notes he oversaw tens of thousands of job cuts and that IBM lost leadership in several hardware and software markets during his tenure.
What was the cause of death?
Not confirmed in the source.
ON-PREM Former IBM CEO Lou Gerstner passes, aged 83 Oversaw a significant resurgence in Big Blue’s fortunes during the dotcom era Simon Sharwood Mon 29 Dec 2025 // 05:38 UTC IBM has announced the…
Sources
- Former IBM CEO Lou Gerstner passes, aged 83
- Lou Gerstner, Former IBM Chief, Has Died at 83
- Lou Gerstner
- Louis Gerstner, CEO credited with turning around IBM …
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