Cabletron has revealed plans to axe a number of distributors in a quest to achieve a fully indirect channel following the acquisition of Digital's network products division.
The reorganisation was unveiled as Cabletron president and CEO Don Reed resigned on 30 March to be replaced by the vendor's chairman Craig Benson.
This was followed on 31 March with the departure of Stephan Grey, director of marketing and communications, and Mark Truhlar, senior director of software development.
According to a Cabletron representative, the two resigned over differences with Benson's strategies.
Ray Sangster, UK managing director at Cabletron, said the company has now laid its entire guidelines for the channel where distributors will report to three divisions, including enterprise, carrier and Digital.
Sangster said under the strategy, each country manager would retain control over their region and, although the aim is to move to a wholly indirect channel, it is retaining 25 direct contracts with major customers.
Historically, however, distributors have complained over the direct contracts, claiming that the strategy produces a mixed channel.
But Sangster stated: 'The channel will become 100 per cent indirect once we have fulfilled these contracts - which will be in about two years' time.'
Sangster confirmed the number of distributors will be reduced from six to four.
Although Sangster was reluctant to name which companies would remain, he hinted that the vendor would be looking to recruit one broadbase distributor.
In the US, Cabletron's management restructure has continued unabated.
According to a source, the vendor is under pressure from Wall Street to up its share price, which has dropped from $33.5 on 24 September to $14 at the end of March.
Infrastructure provider says international sales now make up 51 per cent of its revenue
Suzanne Chappell of TMS plans sailing venture after selling Oxfordshire-based TMS to acquisitive Chess
Withdrawal of credit insurance by some providers a 'reflection' of current challenge facing IT sector, according to MD Steve Soper
SMART's UK managing director joins Lenovo to boost SMB business