Two top executives at Dell are leaving the No. 2 PC maker as part of a
reorganization designed to boost sales as it struggles to regain share from
bigger rival Hewlett-Packard.
Dell said that marketing chief Mark Jarvis would step down.
Mike Cannon, its president of global operations, will retire effective Jan.
31, and be succeeded company veteran Jeff Clarke.
The group that handles sales to businesses, which account for the bulk of
Dell's business, will be reorganized into three units, broken down by the
size of their customers.
"It's a big shake-up," said Tim Ghriskey, chief investment officer for
Solaris Asset Management. "Usually shake-ups like this - at least
initially - result in some positive momentum. It shakes up the workforce. It
gets them more motivated. They get more excited that there is some positive
change going on."
Dell [DELL 10.24 0.01 (+0.1%) ] plans to centralize a diverse global
organization responsible for sales of business products. The new division
will be broken up into segments that handle sales to large enterprises,
government agencies, and small and medium businesses.
Dell's consumer business is already organized globally under unit president
Ron Garriques.
The latest moves come after a sharp fall in Dell's stock price this year.
Shares are down nearly 60 percent this year, underperforming the broader
stock market.
Dell shares were down 5 cents to $10.18 in early Nasdaq trading. They hit a
52-week low of $8.72 on Nov 21 and a high of $26.04 on Aug 08.
Solaris' Ghriskey said the restructuring makes Dell shares more appealing.
His New York-based firm does not hold shares of Dell or bigger rival
Hewlett-Packard Coin its $2 billion portfolio.
The company's new large enterprise division will be headed by Steve
Schuckenbrock, who is currently president of global services and chief
information officer.
The public division will focus on technology work in areas such as
government, education, health care and the environment, and will be overseen
by Paul Bell, currently president, Dell Americas.
Lastly, Steve Felice, currently president of Dell Asia-Pacific and Japan,
will head the small and medium business division.
The company plans to align its financial reporting with the new structure
during the first half of Dell's fiscal-year 2010. That starts in February.
Source:
http://www.cnbc.com/id/28447053
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