Toshiba Reorganizes; Will Cut 200 Jobs

Just two months after unveiling a new program for its reseller channel, the company will split into four separate organizations.

In a statement, Toshiba said the units would include a Digital Products Division, which will focus on product sales; a Digital Solutions Division, which will focus on system and mobility solution sales; its existing Storage Device Division, which will largely remain unchanged and focus on storage components; and a new TAIS Operations unit that will focus on consolidating logistics, supply chain management, support and engineering on a companywide basis.

Just one month ago, Toshiba lost one of its top players, executive vice president Rod Keller, who abruptly left the company after shepherding its restructured channel programs.

In the statement, TAIS President Hidejiro Shimomitsu said the company's move to restructure is aimed at playing to Toshiba's strengths in the mobile computing space. "Our intent is to create an organization structure that strengthens our position in segments of the mobility market where we are already strong, such as notebook PCs, while accelerating our entry into new segments of the market which require more complex solutions," he said.

Mark Simons, TAIS vice president and general manager of Transaction Sales at what's currently the Computer Systems Division, and the man who replaced Keller on an interim basis, will take over the Digital Products Division; Mike Durance, vice president and general manager of Toshiba's Telecommunications Systems Division, will take over the Digital Solutions Division; Scott Maccabe will keep his post as vice president and general manager of Toshiba's storage group; and Gary Weaver, senior vice president of Toshiba's Computer Systems Group, will head up the new TAIS Operations unit.

As part of the restructuring, Toshiba will lay off about 200 of its 1,250-person workforce over the next six months, across all units and functions of the company. Simons said the workforce reduction will not include Toshiba's channel organization and that the company actually plans to add personnel to its indirect-sales operation, which will remain under his purview.

"The channel-facing organization will continue to be within the core computer group, which is the Digital Products Division," Simons said in an interview. "We don't dream of it changing."

Simons acknowledged that the reorganization will be companywide, adding, "For the most part, it's the [same] strategies and plans we had been operating under," he said. "We are working on the growth plans and delivering them as quickly and efficiently as possible."