When Matt Hicks was promoted to CEO of Red Hat last summer, he faced two major hurdles: the macroeconomic environment and the increasing reliance on Artificial Intelligence (AI). In his first 10 months in office, Hicks has had to navigate the tricky relationship between Red Hat and its parent company, IBM, as well as deal with the realities of the pandemic, resulting in the layoffs of 700 workers.
Red Hat offers open-source software development and software consulting services. It has a unique partnership with IBM, as the company was acquired by IBM for $34 billion in 2018. Hicks has had to figure out how to guide Red Hat while still drawing from IBM’s sales power. Red Hat has continued to perform well, with an 8% increase in revenue over the past year despite the difficult economic circumstances.
At the same time, Hicks had to respond to the pandemic and the financial instability it caused. He has done so by making tough decisions including layoffs that came with significant internal push-back and criticism. Hicks has tried to lead with transparency and understanding, taking the time to explain the actions being taken and ensure employees are aware of Red Hat’s situation.
Hicks emphasized the importance of taking the long-term view, noting that when decisions are made with the long-term goals of the company in mind, outcomes can be more successful. With a successful first year at the helm of Red Hat, Hicks has demonstrated his ability to lead in a challenging environment and is now setting his sights on the future opportunities that Red Hat and its partners have in store.
