NTT Confirms Restructuring Plans Involving Dimension Data
Nippon Telegraph and Telephone (NTT) Corp on Tuesday announced a major restructuring affecting several of its principal subsidiaries, including Dimension Data, NTT Communications and NTT Data, intended to make the group “more competitive and profitable” on the global stage.
TechCentral first reported details of the planned restructuring last week.
NTT said it will establish a new holding company focused on global business.
“We’re establishing a new global holding company under NTT Corp by the third quarter of the fiscal year ending 31 March 2019,” the Japanese ICT giant said in a statement. “This entity will be called NTT, Inc, and Jun Sawada, current CEO of NTT Corp, will also serve as its CEO.”
Estimated operating revenue of NTT, Inc is approximately US$38-billion with $20-billion already coming from outside Japan, it said.
By the end of this calendar year, NTT Communications, Dimension Data, NTT Data, NTT Security and NTTi3 will be transferred to NTT, Inc, and will “align together under its new leadership”, NTT said.
“While making NTT Group more competitive and profitable, our global governance will also benefit from embracing and integrating our people’s diverse talents, skills and management experience in global markets. The new structure will leverage their expertise to its maximum potential.”
NTT said it will consider integrating the various businesses — except for NTT Data — by September 2019. “One will look after our global business; the other will cater for our domestic business in Japan,” it said. “NTT Data will continue to collaborate with other companies in the group while retaining its present management structure, status as a listed company, management autonomy and brand.”
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