French technology giant Atos is set to be split into two, with the company’s CEO Rodolphe Belmer appointing two deputies after putting in his papers.
Belmer’s resignation will take effect in September. The split unit will offer digital and cybersecurity services under a brand called Evidian. The company’s BPO and other services will continue to operate under the Atos brand.
The tech giant is one of the victims of digital transformation. Atos’ IT infrastructure services business took a devastating blow over the past two years as companies around the world continued to shift their data to the cloud.
The slumping revenue has sent the company’s share price down 63% over the past six months.
Analysts are comparing Atos’ spinoff strategy to that of IBM, which spun off its legacy IT infrastructure business into a new unit called Kyndryl.
IBM’s strategy does not seem to have borne fruit yet, but Atos looks determined to move ahead with its plan.
The new deputies appointed by Belmer are Nourdine Bihmane and Philippe Oliva. Bihmane will oversee the company’s BPO and other businesses, while Oliva will take charge of Evidian.