Dell’s President, Marketing Chief Out in Shakeup

NEW YORK — Dell’s president and chief marketing officer are leaving the company as part of a reorganization at the No. 2 PC maker, which is facing weak demand during the economic downturn.

The company has already been cutting jobs and overhead as it tries to cope with both the economic slowdown and intense competition, and now plans to restructure its operations around three major businesses.

As part of the reorganization, Dell said Mike Cannon, its president of global operations, would retire effective January 31, and will be succeeded by Jeff Clarke. Marketing chief Mark Jarvis, will also step down.

Dell plans to set up a global organization around three major segments – large enterprise, public sector, and small and medium businesses. Dell’s consumer business is already organized globally.

The latest moves come after a sharp fall in Dell’s stock price this year. Shares are down nearly 60 percent this year, underperforming the broader stock market.

In a statement, the company said its new large enterprise division will be headed by Steve Schuckenbrock, who is currently president of global services and chief information officer.

The public division will focus on technology work in areas such as government, education, health care and the environment, and will be overseen by Paul Bell, currently president, Dell Americas.

Lastly, Steve Felice, currently president of Dell Asia-Pacific and Japan, will head the small and medium business division.

The company plans to align its financial reporting with the new structure during the first half of Dell’s fiscal-year 2010. That starts in February.

Last month, when reporting its earnings, Dell said progress in restructuring had resulted in the elimination of 2,200 jobs since the previous quarter. It said it had shed 11,600 employees since the second quarter of last year, excluding acquisitions.