Did you try to boot with the previous kernel?Since the upgrade, i have very slowly VMs (all) (windows & Linux) in all my server
Check the speed of the CPU with
grep MHz /proc/cpuinfo
if it is able to reach nominal/turbo speeds. I've had a few cases (unrelated to this update) where the CPU for some reason can't raise it's speed (faulty PSU, BIOS gone mad, faulty cooling). If it can't reach at least nominal speed, it will lack capacity, hence increasing the load and making everything slow.