IBM posts weak Q1 results, chief asks employees to do better

by CXOtoday News Desk    Apr 25, 2013


IBM is in no mood for self-pity. Which is why it has asked its employees to pull up their socks after posting weak results in the first quarter. The Wall Street Journal reported that in the latest internal video message from IBM’s chief Virginia Rometty, she told employees that the company had become too sluggish and unresponsive.

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, reported Reuters.

Rometty said IBM needs to speed its shift to new computing models to get back on track, the Journal reported citing the video.