After experiencing falling revenue for 14 straight quarters, the tech giant is downsizing.
At The New York Times DealBook conference Tuesday, Rometty told CNBC's Andrew Ross Sorkin the decline has been caused in part simply by being a global company. The other major factor is IBM has been divesting, a lot.
"In my tenure, I've divested $8 billion of businesses," Rometty said. "The point was, they weren't about the future of where we were going."
Rometty cited an example of a recent divestiture in hardware — making semiconductors. Now, only 10 percent of IBM is comprised of hardware.
That's an example where size does matter," she said. "The world is consolidated, we were subscale, we did it for 60 years, right? So I do R&D but now I have a partner do the manufacturing for that area."