Erich Clementi replaces Martin Jetter as Chief of IBM’s struggling tech services unit
IBM is planning to replace the Chief of its struggling technology-services unit, as part of efforts to revitalise the company’s market position.
A notice from IBM chief executive Virginia Rometty on the company’s internal website noted that Martin Jetter, who is the currently leading IBM operations in Japan, has now been appointed as senior vice president and will also head the IBM Global Technology Services.
Citing the notice, the Wall Street Journal noted that in his new role, Jetter will initially report to Erich Clementi, who has been responsible for the services business since 2010 and will succeed him on 01 January.
The notice added that Jetter is in line for another vital senior leadership role as part of the approaching organisation restructuring.
IBM reported 4% drop in its Q3 revenue, mainly due to weaker sales because of a ‘marked slowdown’ in purchasing behaviour in September.
The company’s overall revenue dropped to $22.4bn for the quarter, with more bad news being 7% drop in revenues in the supposedly ‘growth’ markets including Russia, India and China.
Further, the tech firm also approved $5bn for stock buyback plan together with $1.4bn remaining from its already existing programme.