Dell Axes CMO and Global Ops President as Revenues Sag

05 January 2009

ROUND ROCK, Texas: Struggling computer maker Dell has despatched its president of global operations Mike Cannon and chief marketing officer Mark Jarvis through the one-way revolving door marked 'Out'.

Both men were appointed by the company's founder-chairman Michael Dell shortly after he resumed his ceo duties last year.

The oustings, say analysts, indicate that Dell's much vaunted turnaround plan is juddering perilously close to stalling.

Says Roger Kay of Endpoint Technologies Associates: "They spent a lot of money bringing in this new talent and got precious little for it."

The departures, Kay adds, signal the official end of Michael Dell's  "honeymoon period", conferred by investors and analysts after Dell snatched back the ceo title from his former close friend and protégé Kevin Rollins.  

In addition to the latest top-tier departures, the company plans to dismantle its regional organisation and instead split its business into global operations focused on different customer groupings.

This will lead to the creation of new divisions for large enterprises, public sector customers and small and medium businesses. Operating alongside the existing global consumer group, Dell claims the restructure will bring "faster innovation and greater responsiveness".

Dell's share price fell by some 60% during 2008, and the firm also failed to hit growth expectations of 7%, instead undergoing a 3% fall in revenues as market leader Hewlett-Packard continues to erode Dell's market share.

Data sourced from Financial Times; additional content by WARC staff