Dell Reorganizes, Shakes up Top Management

Company will be organized globally rather than regionally

Dell Inc. announced a major reorganization of its operations on Dec. 31 and the departure of two top executives. Dell said that instead of regionally it will now organize globally around four major customer segments -- large enterprise, public sector, small and medium businesses and consumer products.

Dell, which has been hard-hit by the economic slowdown and increased competition, said its consumer business is already organized globally. "Dell believes the four groups best capitalize on the company's competitive advantages, while strengthening execution and synergies," the company said.

"In the past two years we have significantly improved our competitiveness, reengineered our supply chain (and) broadened our product portfolio," said Michael Dell, CEO. "Customer requirements are increasingly being defined by how they use technology rather than where they use it," Dell continued. "That's why we won't let ourselves be limited by geographic boundaries in solving their needs."

Dell also announced that Mike Cannon, president of global operations, will retire January 31 and be replaced by Jeff Clarke who will serve as vice chairman for global operations and head the business client product group.

The company said Mark Jarvis will step down as chief marketing officer and be replaced by Erin Nelson, vice president of marketing for Dell Europe, Middle East and Africa.

Dell has carried out a series of cost-savings moves recently including cutting its work force by around 10% over the past year.

Copyright Agence France-Presse, 2008

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