Qwest’s new leader, Richard C. Notebaert, has made his first big changes at the company since joining the struggling service provider last month.
The new chairman and chief executive officer announced yesterday he has recruited three senior executives and made organizational changes as part of his plan to refocus the business, bring proven managerial talent to Qwest and implement a more cohesive approach to key customer segments.
Oren G. Shaffer has joined Qwest as vice chairman and chief financial officer. Shaffer was CFO of Ameritech from 1994 to 2000 after spending 25 years at Goodyear, where he was CFO and a member of the board of directors. He succeeds Robin R. Szeliga in the CFO role. Szeliga remains an executive vice president of the company, focusing on Qwest’s debt reduction plans.
Qwest has also reorganized the company around three market-facing units serving consumers, businesses and wholesale customers. Qwest’s national consumer markets, wireless, cable and video businesses have been combined as the consumer markets group under executive vice president Annette M. Jacobs, who was formerly responsible for the wireless business. Qwest’s national business accounts and global business accounts have been combined under executive vice president Clifford S. Holtz, who was formerly responsible for national business accounts and will now head up the new business markets group focusing on business customers of all sizes. Gordon C. Martin, executive vice president, will continue to run Qwest’s wholesale markets group.
Qwest has also formed a special businesses group, Qwest Enterprises, headed by James L. Becker, who was formerly executive vice president of customer operations. This unit will contain some of Qwest’s smaller standalone businesses, including hosting and application services, operator services, calling cards, international networks and other operations. The goal of Qwest Enterprises will be to provide these businesses with special focus, allowing those that meet profitability objectives to prosper and grow.
Jacobs, Holtz, Martin and Becker will report to Afshin Mohebbi, president and chief operating officer, who is now responsible for all of Qwest’s operating units, including Qwest’s directories business, QwestDex.
James A. Smith, formerly executive vice president for national consumer markets; Shaun P. Gilmore, formerly executive vice president for global accounts; and Ross Lau, formerly president, Qwest Asia, will all be leaving Qwest.
In other management changes, Joan H. Walker has joined Qwest as senior vice president, corporate communications. Walker was formerly senior vice president, global public affairs at Pharmacia. Earlier, she held a similar SVP role at Monsanto prior to the company’s merger with Pharmacia & Upjohn in April 2000. Before joining Monsanto, Walker was senior vice president corporate communications at Ameritech from 1996 to 1999. She succeeds Michael P. Tarpey who announced his retirement last April.
Gary R. Lytle, a senior government affairs executive who was formerly interim president and chief executive officer of the United States Telecom Association and ran Ameritech’s Washington office from 1992 to 2000, has joined Qwest as vice president, policy and law, responsible for the company’s Washington office. He succeeds Lauren “Pete” Belvin, who will serve as a consultant to Qwest.
In addition to Shaffer, Mohebbi, Szeliga, Walker and Lytle, reporting to Notebaert will be Drake S. Tempest, executive vice president, general counsel; Ian V. Ziskin, executive vice president and chief human resources officer; and Al-Noor Ramji, executive vice president and chief information officer.
“Today’s organizational changes will bring greater focus to our efforts to meet the needs of our customers and streamline the company for the key priority of retaining and growing our business,” said Notebaert, the former leader at Tellabs and Ameritech, in a statement. “I am confident that, in consolidating our operating units under Afshin Mohebbi, we can improve our ability to provide seamless end-to-end communications solutions to our customers while increasing synergies and eliminating overlap and inefficiencies.
“In bringing on board Oren Shaffer, Joan Walker and Gary Lytle in key staff positions, I believe we have added significant talent and credibility to the management team. While we may make further management changes, I believe the senior team we now have in place is very well suited to meet the challenges we have ahead of us.”
