John Fellows Akers
John Fellows Akers | |
|---|---|
| Born | Template:Birth date |
| Died | August 22, 2014 (aged 79) Boston, Massachusetts, U.S. |
| Occupation | Business executive |
| Years active | 1960–1993 |
| Known for | CEO and chairman of IBM (1985–1993) |
John Fellows Akers (December 28, 1934 – August 22, 2014) was a prominent American executive who held the positions of president (1983–1989), chief executive officer (1985–1993), and chairman (1986–1993) at IBM.
Education
Akers pursued his higher education at Yale, where he became a member of the Delta Kappa Epsilon fraternity (Phi chapter).
IBM
After completing his service as a Navy jet pilot, Akers joined IBM in 1960.
He ascended to the CEO role in 1985, with endorsement from his predecessor Frank Cary. In 1989, Sam Palmisano was appointed as Akers' assistant; Palmisano would eventually become IBM’s chairman and CEO. Akers’ tenure coincided with IBM’s decline throughout the mid-1980s to early 1990s. Apple Inc. co-founder Steve Jobs once characterized him as "intelligent, articulate, an excellent salesperson, but lacking product expertise.”
Akers aimed to streamline IBM’s complex bureaucracy to prioritize profitability. On January 29, 1988, he initiated a comprehensive reorganization that divided the company into five independent units responsible for innovation, design, and production. This decentralization strategy sought to diminish headquarters’ oversight while empowering younger management, resulting in thousands of employees experiencing changes in roles or reporting structures. His objective was to eventually spin off these units—referred to as "Baby Blues"—from the main "Big Blue" entity.
During his leadership, Akers also implemented significant workforce reductions, decreasing employee numbers from 407,000 to 360,000 by the close of 1991. This marked the end of IBM’s tradition of lifetime employment through voluntary buyouts and led to the company’s first layoffs in March 1993, which negatively impacted employee morale. Additionally, Akers closed ten manufacturing plants and cut production capacity by forty percent.
Retirement
On January 26, 1993, Akers announced his decision to step down following IBM’s reporting of a $5 billion annual loss and a dividend cut from $1.21 to 54 cents after eight consecutive quarters of underperformance. Subsequently, IBM president Jack Kuehler was reassigned as vice-chairman; finance director Frank Metz was dismissed; and Paul Rizzo—a former CEO contender who had retired in 1987—returned as vice-chairman and finance director. Akers continued as CEO for three months while a committee searched for his replacement. He officially retired as chairman and CEO on April 1, 1993, with Louis V. Gerstner, Jr. taking over as the first outsider appointed to lead IBM.
The leadership transition was largely influenced by long-serving director Jim Burke, who facilitated discreet discussions between Rizzo and Gerstner aimed at resolving IBM’s difficulties. Concerns about shifts in board authority and declining stock values also involved former CEOs John Opel and Frank Cary, along with key shareholders such as financial institutions. Some viewed Akers as constrained by an antiquated IBM culture, while a complacent board was also held responsible for the company’s troubles.
Other business roles
Akers was a member of the board of directors at Lehman Brothers during its bankruptcy proceedings.
Personal
Akers passed away due to a stroke at age 79 in Boston, Massachusetts on August 22, 2014.