Will This New “Long-Term View” Approach Also Include Layoffs?
by John Paczkowski
Posted on March 9, 2009 at 2:55 PM PT
Whatever does not kill us will make us stronger. That’s the view of IBM CEO Sam Palmisano, who says the recession will not do to Big Blue what it is doing to so many others. In an exuberant letter to shareholders today, Palmisano wrote that IBM (IBM) will not cower before the current economic turmoil. “Many companies are reacting to the current global downturn by drastically curtailing spending and investment, even in areas that are important to their future,” he said. “We are taking a different approach. Of course, we must continue to improve our competitiveness. But while we maintain discipline and prudence in the near term, we also maintain the discipline to plan for the future. We’re not looking back, we’re looking ahead. We’re continuing to invest in R&D, in strategic acquisitions, in growth initiatives–and most importantly, during these difficult times, in our people. In other words, we will not simply ride out the storm. Rather, we will take a long-term view, and go on offense.”
Ignoring for a moment the irony of a company that’s laid off 4,600 employees in the past few months professing to invest in its people, Palmisano’s remarks are quite interesting. Certainly, they’re anomalous to much of what we’ve been hearing lately. No gloom and doom from ol’ Sam, only contrarian bluster. Perhaps just enough to justify that 14 percent pay increase he accepted in 2008….
Comments
There is enough gloom and doom out there, including your own employer John. Why pick on a guy who says he’s going to capitalize? As I recall your skepticism for Amazon’s best year ever comments, how did that work out for you?
Market share might be tough to get from HP, but there are enough blowups like Satyam, SGI and the perennial favorite Sun Micro to grab customers.
Posted by Jeff Stevens at March 10th, 2009 at 2:58 am