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General DataCom Restructures To Focus Product Lines
General DataCom Industries Inc. disclosed a majorrestructuring last week, splitting the company into two
divisions: Broadband Systems and Network Access. Each will
have its own profit-and-loss responsibilities, and its own
dedicated sales, marketing, and engineering staff.
GDC sells asynchronous transfer mode equipment to telecom
carriers and network-access equipment to end-user
organizations. Charles Johnson, chairman and CEO of General
DataCom, says it was becoming difficult for sales and other
personnel to know the company's two product lines well.
"It's like having a sales force that sells airplanes and
cars," he says.
GDC expects to incur a $2.5 million charge against first-
quarter 1999 earnings, which the company will offset in
fiscal 1999 through expense reductions resulting from
streamlining business operations. GDC hopes the
reorganization will cut $10 million a year--but more
important, that it will bring in additional revenue with
faster product development and sales cycles, and a more
tightly focused employee base.
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