IBM's 1993 restructuring
Lou Gerstner took over IBM in 1993 and cut 35,000 jobs on top of earlier reductions, shrinking the company from about 400,000 employees in 1990 to roughly 220,000 by 1995. He pivoted IBM from hardware to software and services.
IBM lost billions in the early 1990s but returned to profitability by 1994.
The pivot made IBM a services and software leader and saved the company from collapse.
Like eBay, IBM was a legacy tech company that cut deeply to fund a new strategic direction. The question is whether eBay's AI pivot will succeed like IBM's services pivot did.
