Digital links arms in dramatic global rejig

In an attempt to simplify its structure and channel relationships, Digital has consolidated its PC and workstation divisions

Digital is to undergo a dramatic worldwide restructure after the company merged its PC and workstation units into one.

From 1 July, Digital will consist of three divisions: sales and marketing, products and services. The restructure is the third worldwide reshuffle since CEO Robert Palmer took control in 1992.

As part of the restructure, Digital systems business unit and personal computer business unit will be scrapped and folded into the products division, which will oversee product development, engineering and manufacturing. The restructure means Digital sales staff and resellers will be able to sell all the manufacturer?s products, not just services or hardware.

Details of how the changes will be implemented in the UK have not yet been finalised, but James Stevenson, general manager for the UK and Ireland systems business unit, insisted there would be no job losses.

?From the partners? and customers? point of view it is beneficial because they will have a reduced number of relationships. They will only have to have one conversation with one group of people rather than two,? he said.

Joe Hermani, chairman of Digital distributor Westcoast, said: ?We saw difficulties in the market. Products came from three different discount structures and three different companies within one company.?

Amanda Cook, marketing manager at Digital reseller Hamilton Rentals, said: ?This means that our dealings with Digital are now centralised and we can deal with everyone all at once. We don?t have to mess about with different people and different departments.?

In a statement about the restructure, Palmer said the changes ?are designed to strengthen support for our current model of direct and indirect sales and will be implemented in a way to avoid disruption at the customer level.?

The company is also looking to consolidate its manufacturing facilities to save itself $100 million a year.