Organizational change: IBM says restructuring should yield better hardware for SMBs

The U.S.-based unit of IBM announced a restructuring of its hardware division that is expected to improve the company’s ability to design products specifically for small and
The restructuring of this division, known as the Systems and Technology Group (STG), is being described as the biggest reorganization undertaken by IBM in the last 15 years.
The revenues of the STG in third-quarter 2007 decreased 10 percent year-over-year to $4.9 billion, which included the group’s divesture of the printing system division in June 2007. The reorganization will create
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Tom Jarosh, VP of transformation for STG, said the restructuring would result in a small number of layoffs. However, he claimed that the main changes would involve shifting internally focused employees to positions where they would deal more closely with customers.

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