Toshiba Restructures U.S. Operations, Partner Program

Toshiba America Information Systems' operations, which were previously divided into five sections, have been consolidated into three main business divisions: the Digital Products Division, Digital Solutions Division, and Storage Device Division. The Digital Products Division will be responsible for Toshiba notebooks, PDAs, and other mobile products, while the Digital Solutions Division will concentrate on vertically specialized servers, mobile communications systems and emerging technologies within Toshiba. The Storage Device Division, which includes Toshiba storage products, essentially remains unchanged in terms of the current alignment within Toshiba America information Systems.

Mark Simons, currently vice president and general manager of Toshiba America Information Systems' Computer Systems Group, will serve as vice president of the Digital Products Division. Simons took over for Rod Keller, who headed the Computer Systems Group before abruptly departing in July. Keller had led the effort to revamp Toshiba's channel program, which was re-launched in July. Simons said that Keller's position has been eliminated and couldn't elaborate on the details surrounding Keller's departure. Simons did say that the restructuring of Toshiba America Information Systems had been underway for quite a while during Keller's tenure.

Simons said the Digital Products Division will concentrate on increasing sales and market share for Toshiba's volume products, such as its line of notebook computers. "The aim is to aggressively grow our business, and I emphasize aggressively," Simons said. "We're very much a sales and marketing oriented operation that is focusing on volume."

To that end, Simons said the company is revamping its supply chain operations to deliver more products faster to its channel partners through the new Toshiba Preferred Partner Program. "The speed of executive will mean everything," Simons said. "We're going to get better in time to market. We believe there's some significant efficiencies we can gain on the supply chain."

Toshiba America Information Systems' Preferred Partner Program was introduced in July and featured new components such as "pay for performance" incentives, rebates, financing options and enhanced sales support. The company, which does 90 percent of its business via indirect sales, had lost ground in the channel over the last few years, but Simons said the new program is helping the company win back partners; more than 400 solution providers have signed up for the program since July, he said. "Toshiba was a mainstay in the channel throughout the 1990s, and we lost that," Simons said. "Now we're trying to get that back."

Toshiba's restructuring will also have an effect on the company's channel program's resources. Simons said Toshiba is reallocating its workforce and budgets to strengthen the partner program. "We're moving headcount up by about 20 percent and the overall investment by about 50 percent," he said.

Toshiba's restructuring comes at a price, however, as the company has significantly reduced headcount. Toshiba also announced today that it will cut 200 more jobs, bringing the headcount for America Information Systems to approximately 1,050. Consolidating the various divisions into three parts, however, has saved Toshiba "tens of millions of dollars," Simons said.

The restructuring changes will take effect Oct. 1.