Creative restructure sees loss of bigwigs

Troubled peripherals manufacturer Creative Labs has lost senior staff, including its regional manager for Northern Europe Dave Askew, as it re-organises to recover from the crash in CD-Rom drive prices.

Sources said changes to Creative's sales channels are likely following the reorganisation and that there had been disagreements at the UK arm in recent weeks. Askew left last Friday following the departure of European sales director Michel Grunspan and worldwide head KS Chay.

Julia Duthie, UK distribution manager, has been promoted to channel sales manager covering all sales channels, as Askew will not be directly replaced.

Duthie said the UK office will report directly to Mike Weatherley, sales and marketing VP.

'The flatter structure will enable us to react more quickly. We will be concentrating on R&D.' The company's R&D arm Creative Technology has hired Dave Rossum as chief scientist and has signed a joint development deal with Samsung covering CD-Rom drives.

Graeme Watt, joint MD at Creative distributor Frontline, said the company's narrow range was not broad enough to cope with the price falls. 'When companies have their backs against the wall the management often goes.'

Creative will launch a sound card range at ECTS next month, in time for the increasing Christmas demand at mail-order dealers and retailers.