IBM’s chief executive is in the middle of a restructuring of the business management division
IBM’s head of global business management is in Washington, D.C., this week for a meeting with President Obama and his top economic adviser, to discuss the company’s restructuring.
Jim Anderson is on a tour of several U.S. companies in which he will meet with CEOs, investors and government officials.
The meetings come amid ongoing speculation about the future of the firm.
A former top executive of the software giant is now leading the reorganization.
In an interview with CNNMoney, Anderson said IBM’s business management divisions are “the heart of IBM.”
Anderson is leading the restructuring and the company is expected to have to spend more than $10 billion to get it done.
He said the reorganizations are intended to streamline IBM’s operations and improve its business processes.
“We have to make it more efficient,” he said.
Anderson said that IBM will also have to streamlines the business processes it uses to evaluate new technologies and make sure that existing systems work together more effectively.
“This is about putting in place new processes to make sure we’re managing all our business processes in a way that’s best for our customers, the world and for our employees,” Anderson said.
He added that IBM is still trying to decide how it will handle some of the companies it has bought or acquired.
He also said the company will be making changes to how it works with governments, and that some companies might be able to “go back to their core values” and continue to operate as usual.
IBM was acquired by Hewlett Packard in 2003 for $13.5 billion.
The acquisition is a boon for IBM, which had seen sales drop sharply in recent years.
While the company has been hit hard by the recession and the election of President Donald Trump, the company still accounts for about one-third of all U.K. sales and more than a third of its revenue.
But some analysts have raised concerns about the long-term health of the company.
IBM has been under pressure for years from rivals and consumers, who say the company isn’t following its own advice when it comes to health care.
In March, a former senior executive said IBM executives had told the company that it could face steep losses if it didn’t act quickly to improve the health care system.
“They told us that, and it wasn’t just that they were wrong, they were dangerous,” said Tom Tandy, who was chief executive of Health Systems for more than 20 years at the company before leaving to become an investment banker.
Tandy said in an interview that IBM was now in the “very early stages of the health insurance transition.”
“I think there is a lot of skepticism out there about IBM’s health care business and the fact that IBM has a huge stake in it,” Tandy added.
IBM and its chief financial officer, Daniel Fuchs, are also on the tour, along with a handful of other executives.