The CFO is treating each segment of the business separately and adjusting accordingly. See page 18 of his presentation to analysts
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Cognitive (79% + profits) 67% of revenue is strategic. THUS it makes sense for the CFO to sell assets that don’t align with strategic.
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GBS (27.6% profits) 70% of the revenue is strategic. THUS it makes sense for the CFO to lay off to streamline the business and bring profits to where they need to be.
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TS and Cloud (42.3% profits. Excluding integration SW it’s 34.9%). 36% of revenue is strategic. Infrastructure services and TSS were flat and down 3% year over year growth wise. CFO has already said he will exit low growth areas (think spinoff or partnership). Ask yourself what parts of Infrastructure services and TSS align with strategic growth initiatives. Integration services is 80% + profitable
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Systems (50.8% profit). 60% of revenue is strategic. CFO has already claimed Z and Power are catalysts to bring in services. OS’s are 80% + profit. THUS there is only one area for the CFO to trim. Storage looks to be on the block especially considering it’s SW parts are up in cognitive