Toshiba America Restructures to Push Mobile Devices

Toshiba America Information Systems will reorganize into three divisions, including a group focused on sales of PDAs and notebooks.

Toshiba America Information Systems Inc. said it will restructure its company in order to increase sales of its mobile computing devices.

TAIS, based in Irvine, Calif., will restructure itself into three divisions, the company said. The restructuring will result in the loss of approximately 200 employees from throughout the TAIS workforce, reducing the companys headcount from 1,250 employees to 1,050. The restructuring will take place effective Oct. 1.

Toshiba Americas new divisions will include: the Digital Products Division, which will focus on sales of PDAs, notebook computers and digital projectors; the Digital Solutions Division, which will use components from the computer, imaging systems, telecommunications, and network products businesses to craft system solutions; and TAIS Operations, which will attempt to streamline Toshibas supply chain. TAIS Storage Device Division will remain virtually unchanged, the company said.

The move is designed to reduce operational costs and allow Toshiba to gain ground in notebook computing, the company said. The cuts will not result in Toshiba trimming products from its portfolio, said Hidejiro Shimomitsu, president of TAIS, in a statement.

"The goal of the Digital Products Division is world-class efficiency, leading to outstanding relationships with our channel partners and customers," said Mark Simons, current vice-president of transaction sales in the current Computer Systems Division, in a statement. Simons will now head the new Digital Products Division.

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