Dell replaces execs in global shakeup

 

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By Stuart Turton

Posted on 2 Jan 2009 at 08:52

Dell is replacing two senior executives, as it looks to restructure during the downturn.

The shakeup will see Dell's three global headquarters responsible for business sales merged into one unit, with marketing chief Mark Jarvis leaving the company.

The revamp will also see the company's president of global operations, Mike Cannon, succeeded by Jeff Clarke.

The two executives were hired by Michael Dell on huge sign-on bonuses of $2 million for Cannon and $250,000 for Jarvis, in order to help turn around the ailing PC manufacturer,

However, the company has struggled to regain the top spot from HP, with market share slipping to 13.6% of global unit PC sales in the third quarter of 2008, down from 16.1% in the third quarter of 2006, according to market researcher Gartner.

In contrast, HP's third-quarter share climbed to 18.4% from 16.3% two years earlier.

Alongside the shakeup of operations, Dell trimmed more than 8,000 jobs in 2008, and asked employees to voluntarily take up to five days of unpaid vacation to further lower costs.