Jeff Clarke Steps Up to Address Dell's PC Division Challenges

The PC and hardware section of Dell, known as its largest source of earnings, has been experiencing a downturn for several years.

To counteract this trend, Dell has strategically appointed Jeff Clarke, its vice chairman and COO, to supervise the consumer solutions sector directly.

In a memo shared with employees, Clarke emphasized that this move is intended to streamline decision-making and regain momentum as the industry braces for an uptick in technology upgrades.

With ties to Dell that trace back to 1987, Clarke is a valued ally of founder Michael Dell. He also announced various leadership adjustments aimed at enhancing efficiency.

Among these changes, Sam Burd will transition from his role overseeing CSG to focus on developing Dell's overarching corporate strategy.

Dell's operations are divided into two main areas: CSG and the Infrastructure Solutions Group (ISG).

Shifts in Market Dynamics

While the ISG sector benefits from increasing demand for AI-related technology, reflecting a 29% revenue surge recently, CSG has faced persistent financial setbacks since the peak of 2022.

In 2025, CSG revenues dropped to $48.6 billion, marking a 21% decline compared to its high in 2022, though it remains slightly above pre-pandemic figures.

In contrast, Dell's overall revenue increased by 8% in the 2025 fiscal year, and its stock value has risen by 11% since the beginning of the year.

An employee from Dell's sales support team indicated that the company has been losing market ground to rivals like Lenovo and HP in certain product lines.

However, the employee noted that Dell's display products have consistently outperformed the competition.

According to a company spokesperson, Dell aims to lead the commercial and consumer PC segments, leveraging the upcoming PC upgrade cycle.

The spokesperson added that the company will continue to adapt its business strategies with this target in focus.

Michael Dell, in a LinkedIn post, highlighted the advanced capabilities of Dell's AI-enhanced PCs, pointing to their extended battery life and smooth performance.

Bob Woodward of Technalysis Research noted that when companies face financial and market share challenges, restructuring is a common strategy to introduce fresh perspectives.

Woodward described Dell's reorganization as a 'minimal shift in roles' but expressed hope for it to bring innovation to their pivotal PC sector.

These leadership changes follow the release of an internal survey that indicated a significant drop in Dell's employee satisfaction ratings over the past two years.

The employee net promoter score (eNPS) fell to 32, nearly halving due to workforce adjustments and remote-to-office return policies.

Clarke's Leadership Memo

In his message, Clarke outlined his strategy to rejuvenate the company’s operations by refining leadership roles for agility and competitiveness.

He designated Sam Burd, known for his strategic acumen, as the head of Corporate Strategy, predicting his expertise will be crucial moving forward.

Vivek Mohindra will become a Special Advisor, focusing on essential business initiatives directly with Clarke.

The Telecom Systems division, headed by Dennis Hoffman, will now report under the ISG umbrella, led by Arthur Lewis.

Clarke himself will manage daily operations of the CSG to boost responsiveness as the PC upgrade cycle accelerates. Key leaders under him will include Alex Barretto, Chris Cowger, Bert Park, Karen Plotkin, and Kevin Terwilliger, each responsible for various aspects of the division.

Clarke encouraged his team to remain focused and committed, reassuring them of his deep ties and dedication to the business.