Dell reorganization includes government unit

As part of a broad realignment aimed at boosting sagging sales and a steep decline in its stock price, Dell Inc. is creating three new units, including a division that will oversee its government business.

Dell announced a global reorganization today around three major customer segments – large enterprise, public sector, and small and midsize businesses. Dell’s consumer business is already organized globally, company officials said.

The new alignment will include a public unit that will focus on technology work in the fields of government, education, health care and the environment. Paul Bell, currently president of Dell Americas, will lead it.

Steve Schuckenbrock, currently president of Global Services and chief information officer, will lead the Large Enterprise unit.

Steve Felice, who is currently based in Singapore as president of Dell Asia-Pacific and Japan, will lead the Small and Medium Business unit. It will focus on speeding solutions and technology for small and midsize companies, officials said.

“In the past two years, we have significantly improved our competitiveness, re-engineered our supply chain, broadened our product portfolio and introduced Dell to more people in more places than ever before,” Michael Dell, chairman and chief executive officer, said in a New Year’s Eve statement. “We have laid the foundation for the transition from a global business that’s run regionally to businesses that are really globally organized.”

As a result of the reorganization, two executives will leave the computer giant. Mark Jarvis will resign his position as Dell’s chief marketing officer this fiscal quarter. Erin Nelson, formerly vice president of marketing for Dell Europe, Middle East and Africa, will assume the role of CMO.

Mike Cannon, president of global operations, will retire effective Jan. 31. Jeff Clarke will become vice chairman of global operations in addition to leading Dell’s Business Client Product Group.

“It's a big shake-up,” Tim Ghriskey, chief investment officer at Solaris Asset Management LLC, told the Reuters news agency. “Usually shake-ups like this – at least initially – result in some positive momentum. It shakes up the workforce. It gets them more motivated. They get more excited that there is some positive change going on.”

Shares of Dell stock are down nearly 60 percent this year, outpacing the overall stock market decline.

The company, of Round Rock, Texas, ranks No. 15 on Washington Technology’s 2008 Top 100 list of the largest federal government prime contractors.