NEW YORK (TheStreet) -- IBM (IBM) CEO Virginia Rometty is reportedly reassigning senior members of management in an attempt to correct poor performance in the third quarter, according to The Wall Street Journal.
In an internal memo, Rometty was particularly critical of the growth markets division, encompassing developing markets such as Southeast Asia, Latin America and the Middle East, which saw sales drop 9% in the third quarter. In the high-growth BRIC countries (Brazil, Russia, India and China) revenue dropped 15% and Chinese sales alone saw a 22% year-on-year decrease.
To drive fourth-quarter profits, sales chief Bruno Di Leo will assume responsibility for the growth markets division, while James Bramante, the current senior vice president in charge of the unit, will be reassigned to a different area of the business, according to the report.
At time of publication, an IBM spokesperson had not responded to requests for comment.For the third-quarter ended September 30, the tech bellwether recorded a 4% year-on-year loss in revenue to $23.7 billion, though net income increased 6% to $4.4 billion or $3.68 a share. "I am calling this one a disaster," wrote Jim Cramer in his Real Money analysis on Thursday. "The company seems oblivious to exactly how bad things are." Shares had plummeted 6.6% to $174.37 by market close. In the year to date, the company has shed 9% in share value, trailing the S&P 500 which is up 21.51% for the year.
- You can view the full analysis from the report here: IBM Ratings Report
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts