Louis Gerstner, the CEO who saved IBM from collapse, dies at 83
Louis Gerstner, the former chairman and CEO of IBM, has died at the age of 83. His leadership in the 1990s transformed the struggling tech giant when it faced financial collapse and fierce competition. Current IBM CEO Arvind Krishna announced the news in an internal email to staff.
Gerstner took over at IBM in April 1993, arriving after four years as CEO of RJR Nabisco. Before that, he spent 11 years at American Express, building a reputation for turning around troubled companies. At the time, IBM was running low on money and losing ground to rivals.
Rather than splitting the company apart, he chose to keep it intact. His strategy focused on expanding IBM’s business services division while slashing billions in costs. To raise funds, he sold off non-core assets and streamlined operations. Current CEO Arvind Krishna later called Gerstner’s decision to preserve IBM’s unity a defining moment. Under his leadership, the company stabilised and repositioned itself in the tech industry.
Gerstner stepped down as IBM’s CEO in 2002 after nearly a decade at the helm. His tenure is widely credited with saving the company from breakup and financial ruin. The changes he implemented set the foundation for IBM’s future direction.
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