IBM Corp chairman John Akers must feel that he is being subjected to the Chinese water torture, because as well as Chairman Mao’s doctrine of permanent revolution that seems to be required by IBM management, the Chinese proverb that says that he who rides the tiger finds it hard to get off is becoming chillingly appropriate: after all the company’s cost-cutting measures of the past three years, costs and expenses for the third quarter were up 4.69% – which may not be above world inflation but is disturbingly close to it, and with all the cost-cutting measures biting, the figure should be down; one reason they have gone up of course is that sales declined, but the trend makes it clear that IBM will have to look at making yet more cuts next year.
