Toshiba Ousts Channel Chief

Toshiba channel chief Jerry Lumpkin is one of a number of staff to be leaving Toshiba America Information Systems under a sweeping reorganization at the vendor, according to several channel sources.

Lumpkin, vice president of business channel sales for Toshiba's digital products division, will remain with the company until the end of the year.

With Lumpkin out, Toshiba is eliminating a layer of management, with its commercial channel business now reporting directly to Barry Schwartz, vice president, sales. Previously, the commercial group and consumer group were on equal footing.

But according to Patrick Mani, vice president, corporate and business channel sales, digital products division, that doesn't mean that Toshiba's channel program is getting rolled into the consumer division.

"[Schwartz] is now responsible for all of sales, not just consumer," Mani said. "We are not rolling our channel into the consumer group. We are eliminating a layer of management that, at this point in time, we can't afford."

Still, at least one longtime Toshiba solution provider is not thrilled with the vendor's decision to show Lumpkin the door.

"Getting rid of Jerry Lumpkin is a mistake," said a Toshiba solution provider who asked not to be identified. "He brings credibility to the program and Toshiba's credibility just took a hit."

For his part, Mani realizes Lumpkin casts a large shadow in the channel and that not every partner is going to be happy with the move. Still, Toshiba has reached out to its partners to inform them of the change, he said.

"We have called and communicated with all 115 platinum partners. They are all aware of it," Mani said. "A few aren't particularly happy with the move, but they are running a business too. Sometimes they have to let go of people they don't want to let go. But these are [economically challenging] times."

Mani was quick to add that Lumpkin's contribution to Toshiba was appreciated by the company, but that economic realities took their toll.

"Jerry has been a valuable person and resource to Toshiba," he said. "We appreciate everything he has done. It's unfortunate, but there is a lot of change taking place in the channel."

Jay Tipton, CEO of Technology Specialists, a Fort Wayne, Ind.-based solution provider, was quick to note that Toshiba is not the only vendor to reorganize its channel staff in this recession.

"All these guys are starting to pull back on their people. I just lost my IBM rep last night. I've got to find out what's going on there. They're all trying to cut costs," Tipton said. "They want to partner but then they keep playing musical chairs. We get someone to understand our business and then, boom, there's a change. It's very disruptive and we have to keep [attention focused] on the customer."

Toshiba's senior management was not happy with the performance of the commercial group, according to one distribution executive who asked not to be named.

"Commercial was smaller but had more people and was viewed as not well run," the executive said.

Another distribution executive said Toshiba's commercial group had too many layers that prevented the group from better competing in the channel.

"From a distribution standpoint, they're making some good moves," the second executive said.

Lumpkin joined Toshiba four years ago when the vendor decided to make a big push to re-engage with solution providers. Last fall, Lumpkin noted that Toshiba's channel sales were healthy and the company's notebooks earned Toshiba a VARBusiness Annual Report Card award for 2008.

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