 |
|
|
|||||
Over the past 30 days, many big-name tech giants have seen their stock prices fall hard, largely thanks to President Trumps chaotic tariff rollout. For example, Apple (Nasdaq: AAPL) has seen its shares fall 11% over the past month, while Nvidia has seen its shares fall (Nasdaq: NVDA) fall over 12%. But until yesterday, IBM (NYSE: IBM) was one of the big-name tech giants that rode out the tariff storm pretty well. While the companys stock price did tank along with the rest of the markets in early April, it has recovered nicely since then and, as of the close of bell yesterday, its shares were actually up just a bit (about 0.6%) over the past 30 days. But then IBM announced its Q1 2025 results yesterday, and its stock sank after hours. And today, as of the time of this writing, IBM shares are down more than 6.75% in pre-market trading. The main reason? You can blame Elon Musks DOGE. IBMs Q1 2025 results When a stock drops after a company reports its latest quarterly results, its natural to assume it is doing so because the company in question posted poor numbers. But that actually wasnt the case with IBM yesterday. By all accounts, IBM had a pretty good quarter. Here are its most salient numbers: Revenue: $14.5 billion (up 1%, or up 2% on a constant currency basis) Earnings per share (EPS): $1.60 As noted by CNBC, those critical metrics actually beat analysts estimates, which had expected revenue of $14.4 billion and an EPS of just $1.40. We exceeded expectations for revenue, profitability and free cash flow in the quarter, led by strength across our Software portfolio, IBM CEO Arvind Krishna said in a statement announcing the companys Q1 results. There continues to be strong demand for generative AI and our book of business stands at more than $6 billion inception-to-date, up more than $1 billion in the quarter. But if this is the case, why did IBM’s shares drop? Its all because of DOGE. Elon Musks DOGE takes bite out of IBMs government contracts biz Unfortunately for IBMs stock price, the company also announced last night that 15 of its government contracts had either been canceled or paused due to cuts initiated by Elon Musks Department of Government Efficiency (DOGE). Bloomberg reports that these cuts equate to about $100 million in future payments. Addressing the cuts on the companys financial call, IBMs chief financial officer, James Kavanaugh, said that federal sales account for less than 5% of the companys overall revenue. However, Krishna noted that DOGEs downscaling of the U.S. government did leave IBMs consulting unit more susceptible to discretionary pullbacks and DOGE-related initiatives. As noted by Reuters, the impact of the DOGE cuts on IBMs business sent the companys shares lower in after-hours trading yesterday. IBM issues rare quarterly guidance But IBM also announced something else yesterdayguidance for the second quarter. Historically, IBM has not issued quarterly guidance, but as Reuters notes, the company decided to do so now. “We’ve chosen now, in light of the very unprecedented dynamic of uncertainty going on in the market, to give a second-quarter revenue guidance range. We felt incumbent upon ourselves to give as much transparency as possible to our investor group, IBMs Kavanaugh announced yesterday. That forecast revealed that IBM expects Q2 2025 revenue of between $16.40 billion and $16.75 billion. Thats slightly above analysts forecasts of $16.33 billion, noted Reuters. Still, that attempt at reducing uncertainty in investors didnt do enough to counteract the effects that the DOGE cuts had. In premarket trading this morning, as of the time of this writing, IBM stock is down 6.75% to $228.90. As of yesterday’s close of $245.48 before IBMs Q1 results were released, the companys shares had been up over 11.6% for the year so faran impressive return considering all the market turmoil over the past three weeks.
Category:
E-Commerce
So many mourners lined up to see Pope Francis lying in state in a simple wooden coffin inside St. Peter’s Basilica that the Vatican kept the doors open all night due to higher-than-expected turnout, closing the basilica for just an hour Thursday morning for cleaning.The basilica is bathed in a hushed silence as mourners from across the globe make a slow, shuffling procession up the main aisle to pay their last respects to Francis, who died Monday after a stroke.The hours spent on line up the stately via della Conciliazione through St. Peter’s Square and through the Holy Door into the basilica has allowed mourners to find community around the Argentine pontiff’s legacy of inclusion and humble persona.Emiliano Fernandez, a Catholic from Mexico, was waiting in line around midnight, and after two hours still had not reached the basilica.“I don’t even care how much time I wait here. It’s just the opportunity to (show) how I admired Francisco in his life,” said Fernandez, whose admiration for the pope grew during his 2016 visit to Mexico. “I think because of the respect that I have for him and the great person he was, it’s worth the wait.”The last numbers released by the Vatican said more than 50,000 people had paid their respects during the first 12 hours of the public viewing, starting at 11 a.m. Wednesday. The basilica closed for just one hour Thursday morning, from 6 a.m. until 7 a.m., the planned opening time.Among the first-day mourners was a church group of 14-year-olds from near Milan who arrived for the now-suspended canonization of the first millennial saint, as well as a woman who prayed to the pope for a successful operation and an Italian family who brought their small children to see the pope’s body.“We came because we didn’t bring them when he was alive, so we thought we would bring them for a final farewell,” said Rosa Scorpati, who was exiting the basilica Wednesday with her three children in strollers. “They were good, but I don’t think they really understood because they haven’t yet had to deal with death.”Like many others, the Scorpati family from Calabria was in Rome on an Easter vacation, only to be met with the news of Francis’ death on Easter Monday.Out of devotion to the pope and his message of inclusion, the grieving faithful joined the procession of mourners that wended from St. Peter’s Square through the basilica’s Holy Door, with the repentant among them winning an indulgence, a form of atonement granted during the Jubilee Holy Year. From there, the line extended down the basilica’s central aisle to the pope’s simple wooden casket.By late Wednesday, the wait appeared to be three or four hours and growing. A person doing crowd management estimated that the wait was closer to five hours. The mourners stretched down the center of Via della Conciliazione, in a lane set aside for Jubilee pilgrims.After three days of public viewing, a funeral Mass including heads of state will be held Saturday in St. Peter’s Square. The pope will then be buried in a niche within the St. Mary Major Basilica, near his favorite Madonna icon.The death of Francis, who was 88, capped a 12-year pontificate characterized by his concern for the poor and his message of inclusion, but he was also criticized by some conservatives who felt alienated by his progressive outlook.A procession of priests, bishops and cardinals accompanied Francis’ body Wednesday on its journey from a private viewing inside the Vatican to St. Peter’s Square. The pageantry contrasted with the human interactions of rank-and-file mourners at the public viewing.Francis lay in state in an open casket, perched on a ramp facing mourners, with four Swiss Guards standing at attention. As the crowd reached the casket, many lifted their smartphones to snap a photo.One nun accompanying an elderly woman with a cane walked away sobbing, “My pope is gone.”Such despair was rare. The mood was more one of gratitude for a pope who had, by example, taught many people to open their minds.“I am very devoted to the pope,” said Ivenes Bianco, who was in Rome from Brindisi, Italy, for an operation. “He was important to me because he brought many people together by encouraging coexistence.” She cited Francis’ acceptance of the gay community and his insistence on helping the poor.Humbeline Coroy came to Rome from Perpignan, France, for the planned canonization Sunday of 15-year-old Carlo Acutis, which was suspended after the pope’s death. She stayed to pay respects to Francis, enjoying exchanges with Japanese mourners they met as they waited under the sun in St. Peter’s Square.“For me, it is a lot of things. In my job, I work with disabled children, and I traveled to Madagascar to work with poor people. Being here, and close to the pope, is a way of integrating these experiences, and make them concrete,” she said. Coroy also brought prayers for her father, who is sick with cancer.For Alessandra Nardi, the pope’s death brought back memories of the death three years ago of her beloved uncle Luigi, who used to call her from St. Peter’s Square when he came to see Pope Francis say Mass. He “let me hear the bells toll. It was a beautiful thing.”Riccardo Ojedea from Colombia said his experience waiting in line for two hours to pay respects to the pope had shown him how much “humanity loves the pope.”“He left a very important legacy for everyone,” he said, “to make this world happier.”AP video journalist Isaia Montelione contributed. Colleen Barry, Associated Press
Category:
E-Commerce
Weve all heard the familiar directive: Were going through another reorganization and will be cutting 20% of headcount, but priorities remain the same and, in fact, may expand. Meanwhile, youre being told to just make it work” without offering additional resources, guidance, or support. This conversation, unfortunately, isn’t unique. It represents the silent crisis engulfing middle management across America. Middle managerswho oversee 90% of the U.S. workforceare facing unprecedented challenges in 2025. Recent KPMG data reveals nearly one-third are actively disengaged, while 62% report unsustainable stress levels as they struggle with expanded responsibilities amid shrinking teams. At the same time, Gallup’s findings show employee dissatisfaction at 15-year highs. The economic uncertainty plaguing the U.S. has created a perfect storm for middle management burnout. Organizations are seemingly undergoing constant reorgs and scrambling to eliminate redundancies, optimize productivity and reduce resources to do more with less. Middle managers find themselves caught between the demands from top leadership to cut costs and maintain output while keeping their teams productive and motivated at the same time. The concrete middle Middle managers are what I call “the concrete middle”the foundation bearing pressure from both the top echelon of organizations and the functions and teams reporting to them. They understand the real flow of work, the network connections, and who the true “magic makers” are in the organization. They’re facing tightening budgets from above while trying to maintain an engaged, high-performing workforce below. What makes this crisis particularly acute in 2025 is that the job market is reported as healthy but remains very tight. Employers may be in a wait-and-see mode, and struggling leaders may not see viable alternatives. This creates a dangerous apathywhat I’ve observed as “doing just enough to survive.” But here’s the concern: When the pendulum swings the other way and market conditions improve, companies will feel real painbecause employees remember. They remember which organizations honored their values during difficult times and which simply treated people as disposable resources. Break the cycle of disempowerment One of the biggest challenges middle managers face is maintaining a sense of autonomy and growing their employees’ talent and potential. How do you keep top talent feeling they can contribute meaningfully and advance their careers amid constant change and disruption? The truth is, during volatile periods, trust and empowerment often take a back seat to numbers. While financial responsibility is certainly necessary, organizations need a more nuanced approachparticularly for functions that drive growth. During these unprecedented times, I’ve coached leaders to advocate and empower themselves by harnessing this moment as a chance to reinvent and reimagine how their work is being done. Because amid the volatile and unpredictable times lies opportunityan opportunity to change and employ new strategies, tactics, and ways of working that may not have been supported during more stable, constant, and calm periods. Middle managers, with their unique vantage point, often see possibilities that senior leadership overlooks or never considers. We need to give them the tools, trust, and ability to reimagine their work in ways that might actually achieve growth in a down period while achieving cost savings by simply doing things differently and better. This approach requires a fundamental shift in perspectivefrom viewing middle managers as mere implementers to recognizing them as the crucial bridge between strategy, execution, and market growth. Move from platitudes to real development Many middle managers have been told, “Nobody owns your development but you.” Translation: Its up to you to grow yourself, learn, and improve. Traditional leadership development approaches are not meeting the needs of today’s leaders. The solution isn’t another perfunctory annual performance-review exerciseit’s creating intentional support systems that address well-being, professional growth, trust, and empowerment. Organizations must implement scenario planning into their talent management process. This means preparing leaders for all market conditionsgrowth, stable, uncertain, and competitive landscapes. Building this muscle prevents paralysis during challenging times and empowers managers to push for a strategic repositioning of their teams to restructure, realign, and optimize team performance. The development of top talent isn’t just about surviving difficult periodsit’s about positioning them to deliver in different ways that might not have been possible before. In times of disruption, there’s often more support and openness for working differently, adopting new tactics, approaches, and novel ways of working than during periods when business as usual comes with a playbook of what to do and how to do it. Cut the consensus culture Perhaps the most insidious barrier to middle-management effectiveness is what I call “consensus culture”the endless cycle of meetings and layers of review and approvals that exist primarily to stroke egos rather than drive decisions and unleash innovation and potential. During my time leading organizational development initiatives, we introduced the philosophy of GEPO (Good Enough, Proceed On). This wasn’t about compromising the operational excellence of what you’re doing, but about streamlining how ideas are socialized. Do you really need three to five meetings with people at all levels to make a decision? Can you eliminate the pre-meetings prior to the decision meetings and the “I’m just being informed” meetings that clog calendars without adding value? By streamlining decision-making and trusting and empowering the people who own and support the work, organizations can reduce the time-to-decision and allow experts to take true accountability. This approach isn’t just about efficiencyit’s about restoring purpose and autonomy to the manager’s role while empowering them to do their jobs effectively with minimal bureaucracy. In the absence of this trust, we handicap our middle managers. They become dependent on groupthink and consensus-driven approaches, operating in a highly risk-averse fashion because they fear making independent decisions without extensive backup and group support. This is the opposite of innovationand organizations simply cannot afford thi handicap if they want to innovate, disrupt, and improve performance. Embrace AI as ally, not threat The AI revolution adds another layer of complexity and also an opportunity for middle managers in 2025. Too often, leaders view these technologies through a lens of fear rather than as an efficient resource that enables productivity and output. Its a genuine fear of replacement. But I don’t believe AI will replace good managers. Instead, organizations must be transparent about AI’s business value while generating excitement about its possibilities. AI should be positioned as a complement to human talentjust like we would approach any new technology. Leaders at the top need to create engagement and excitement around AI as a strategic lever that can help streamline processes and improve decision-making. This isn’t about replacing jobs but freeing up time and attention for the work that truly mattersthe strategic thinking and human connection that AI cant replace. The path forward requires moving beyond traditional development approaches to build resilient leadership pipelines capable of sustaining organizations through continuous transformation. By elevating and empowering middle managers, companies can stabilize their operations while preparing for future challenges in an increasingly complex business environment. The companies that will thrive in this era of disruption will be those that transform their middle management from a burnout risk into an innovation advantage through empowerment, trust, autonomy, and accountability for their work.
Category:
E-Commerce
All news |
||||||||||||||||||
|
||||||||||||||||||