By Dominic Maher, 18 June 1999 00:08
NEWS Compaq is to restructure its business and split into three separate units following losses of up to 15 cents per share for the second quarter of 1999. Blaming flat revenue growth between Q1 and Q2, Benjamin Rosen, chairman and acting CEO at Compaq, described the situation as the beginning of a new Compaq. The company will also be aiming to eliminate the $2bn in ongoing operating costs. With a cost structure that is not competitive, according to Peter Blackmore, senior VP for sales and marketing, the company will be working on market alignment for the three very different business groups - Enterprise Solutions and Services, Personal Computer and Consumer. Each group will be accountable for profit-and-loss and marketing drives. Blackmore also pointed out that Compaq would be reorganising the global sales organisation to overlook sales processes across all the business lines, which he will be heading up.
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