Sources: Dimension Data Americas CEO Slaga Out As Company Restructures

Dimension Data Americas CEO Mark Slaga has left the company, sources told CRN, the latest in a series of sweeping changes at the systems integrator in recent months.

Slaga has been replaced by Dimension Data Europe CEO Andrew Coulsen, one source said. Company employees were told Slaga was leaving the company to spend more time with his family.

Dimension Data Americas CFO Eric Gibson is also no longer with the company, one source said.

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Sources said the changes are part of a push by Dimension Data to move from wholly operated units in each geographic region to operating globally, with finance operations centered in South Africa. Under this new structure, there would only be a top sales leader in each region, the source said.

Dimension Data did not provide a comment on the story. Slaga did not respond to calls from CRN.

Slaga has been CEO of Dimension Data Americas since July 2013. He has been with the company since 2000 in a variety of technical and operating leadership roles.

The restructuring and leadership changes join a growing list of drastic changes at Dimension Data, No. 11 on the 2016 CRN Solution Provider 500, including the sudden resignation of Dimension Data global CEO Brett Dawson, who stepped down in June after 12 years at the company. Dawson was replaced by COO Jason Goodall.

Sources also told CRN in recent months that the company has instituted layoffs over the past year, including in customer service, alliances, solutions engineers, sales and the managed services group. The layoffs primarily occurred in the Americas region, although there have also been publicized reports of layoffs in other regions.

Dimension Data has also moved to cut costs in other areas, sources told CRN in recent months, by cutting short-term incentive bonuses and limiting travel for some employees.

Dimension Data's parent company, NTT Data, as a whole is seeing profitability drop 8 percent year over year to 58 billion yen although it said it expects to revise its forecast in the fall when it completes its $3.1 billion acquisition of Dell’s Perot Systems IT services business.

Dimension Data previously had been pushing to aggressively drive up its sales, with a revenue target of $12 billion by 2018. To accomplish that, Dimension Data has been actively making acquisitions, including its 2014 blockbuster acquisition of Nexus, to nearly double its presence in the U.S. market and, more recently, acquiring Ceryx to strengthen its offerings around the Microsoft public cloud.

NTT made clear on its most recent earnings call in August that the focus on profits will continue for the company, as it said profitability continues to improve overall but it ’continues to work for the reduction of unprofitable projects in our group.’

One way the company has looked to do that is with the August launch of NTT Security, which brings together its security subsidiary brands, including Solutionary, parts of Dimension Data and NTT Communications, into a single managed security services company.

’NTT Data will endeavor to grow sales in each region in order to increase the value of our global brand, while securing profits necessary for continually making investments and pursuing better business management efficiency,’ a translation of the company’s first-quarter 2017 consolidated financial results said.