Two execs out in Dell reshuffle

Dell is continuing its major reorganisation

Dell has announced plans to change the way it runs its enterprise branches, outlining a new initiative to shift its business units to segments based on market type rather than region.

The new plan calls for the creation of three global branches, each tasked with running a certain unit for the entire planet rather than a single region. The new segments include large enterprise, public sector and small and medium business.

The new branches will follow the example of Dell's consumer operation, which has already restructured itself as a single global unit.

"Customer requirements are increasingly being defined by how they use technology, rather than where they use it," said Dell founder and chief executive Michael Dell. "That is why we will not let ourselves be limited by geographic boundaries in solving their needs."

The move will result in some casualties, particularly at the top of the organisation. Global operations president Mike Cannon will step down from his position and go into semi-retirement as a consultant. Cannon will be replaced by Jeff Clarke, who will oversee global operations and the business client product group.

Chief marketing officer Mike Jarvis will also be stepping down and taking a consultant role. He will be succeeded by former Europe, Middle East and Africa marketing vice president Erin Nelson.

The move is part of a larger reorganisation which Dell has been undertaking over the past two years. The moves have led to some painful financial results recently, but Michael Dell believes that the project will revitalise the company in the long term.

"In the past two years we have significantly improved our competitiveness, reengineered our supply chain, broadened our product portfolio and introduced Dell to more people in more places than ever before," he said.

"We have laid the foundation for the transition from a global business run regionally, to businesses that are globally organised."