[6] On January 29, 1988, in a sweeping restructuring intended to reverse three years of disappointing performance, Akers created five new, highly autonomous organizations responsible for all of the company's innovation, design, and manufacturing.
The company had previously had a lifetime employment policy but successive voluntary buyouts and the first-ever layoff in March 1993, caused a morale crisis.
Paul Rizzo, a rival with Akers for the CEO position back in 1985 who had retired in 1987 was restored to the post of vice-chairman and appointed finance director.
The management coup was mounted by longtime IBM director Jim Burke,[13] who organized secret meetings between Rizzo and outsider Louis V. Gerstner, Jr. to examine the company's problems.
[8] It was also speculated that several entities were dissatisfied with losing their power on the board of directors and the declining stock price, including the banks which were once IBM's largest shareholders, as well as Aker's predecessors as CEO, John Opel and Frank Cary.
[6] The company's difficulties weren't caused by Akers alone, as some suggested that he was merely doing what he had been "programmed" to do by an outdated "IBM system",[6] while a complacent board of directors was also blamed.