Jim, your thoughts on this saving Compaq? It sounds like they will be busy doing everything but selling computers.
Compaq to split into three profit centers
By Dan Briody
InfoWorld Electric
Posted at 5:47 PM PT, Jun 16, 1999
Compaq will take the biggest step in its reorganization since April's firing of CEO Eckhard Pfieffer by announcing on
Thursday that it is to split into three distinct profit centers.
Insiders say the PC-giant is expecting the divisions to add $2 billion a year to the bottom line by increasing efficiencies
throughout the company. One observer thought the company was likely to split into commercial, consumer, and
services branches, though the final decision was not yet made at the time of this story.
The move comes after a wave of high-level departures hit the company following the surprise ouster of then-CEO
Eckhard Pfeiffer. The departure Wednesday of Hans Gutsch, senior vice president of human resources, organization,
and environment at Compaq marks the fourth executive to depart since acting CEO Benjamin Rosen began cleaning
house in April. Other key departures include Senior Vice President John Rose, Chief Financial Officer Earl Mason,
Senior Vice President and General Manager of Compaq Services John Rando, and Senior Vice President of Sales and
Marketing Mike Heil.
In an e-mail to employees two weeks ago, Rosen alluded to the reorganization, saying that though the departure of
Rose was part of a larger restructuring. Compaq is currently in the search for a new CEO.
"...we are taking some significant, initial steps to realign our organization to simplify operations, improve execution of
our strategy and sharpen our focus on customers,'' stated the memo, sent to all Compaq employees on June 2,
following the departure of John Rose.
Compaq officials responded to calls by saying they would not comment on speculation.
Compaq Computer Corp., in Houston, is at www.compaq.com. |
