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Toshiba Restructures to Focus on Mobility Market

22 Sep, 2003

Toshiba Restructures to Focus on Mobility Market

IRVINE, CA—Sept. 18, 2003—Toshiba America Information Systems, Inc. (TAIS) will restructure the company to increase focus on the mobility market. In the restructure, effective October 1, TAIS will be divided into three main business divisions: Digital Products Division, which will focus on individual product sales; Digital Solutions Division, which will focus on system and mobility solution sales; and Storage Device Division, which is a current division in TAIS in the storage component business that remains essentially unchanged. A fourth organization, TAIS Operations, will consolidate logistics, supply chain management, technical support and engineering functions for the entire company.

“The mobility market is our target,” said Hidejiro Shimomitsu, president of TAIS, “but that market cannot be totally addressed from a sales and marketing perspective by traditional product divisions. The mobile person is in the office, home or traveling, and needs both mobile data and voice. Our intent is to create an organizational structure that strengthens our position in segments of the mobility market where we are already strong, such as notebook PCs, while accelerating our entry into new segments of the market which require more complex solutions.”

In this restructure, the Digital Products Division creates a streamlined organization that can focus on high-volume movement of individual products such as notebook PCs, PDAs, and projectors through multiple channel structures, while the Digital Solutions Division unites system components from the computer, imaging systems, telecommunications, and network products businesses in TAIS.

Mark Simons, current VP/GM of Transaction Sales in the current Computer Systems Division will head the new Digital Products Division, and Mike Durance, current VP/GM of the Telecommunications Systems Division, will head the Digital Solutions Division. Scott Maccabe remains as VP/GM of the Storage Device Division. Gary Weaver, current Senior VP of the Computer Systems Group, will head TAIS Operations.

The consolidation and strategic focus of the restructure will create internal efficiencies that will result in cost reductions and enhanced investment in new business opportunities. Over the next six months, approximately 200 employees will be reduced from TAIS, reducing its nationwide workforce from approximately 1,250 to 1,050. These reductions will be across all functions and levels in TAIS.

“Reductions in force," said Mr. Shimomitsu, "are always difficult actions because they impact our employees. Nevertheless, the reductions are required to maintain competitiveness and to position the company for future growth. It should be clearly noted that we are not reducing our current business portfolio in TAIS, but unifying businesses around our vision of being a leader in mobility products and solutions. We are creating synergy through focus on a strategic objective.”

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