Insight's North American President Out After Reorg

In a statement, Insight said it has merged its global and North America entities, which will be led by Rich Fennessy, Insight Enterprises president and CEO.

"This resulted in redundancy among our leadership team," the company said in a statement, which did not specifically name McGrath or any other executives or employees affected by the reorganization.

"With IT spend down across our global markets"and the reality that the world economy will likely continue to be challenging for some time"Insight made the strategic decision to streamline our organization," according to Insight. "We are confident that the merger of our global and North America organizations will enable greater speed to market and strengthen our ability to help our clients enhance their business performance as a result of their partnership with Insight."

McGrath's profile was still listed on Inisght's Web site Thursday evening. He was appointed president of Insight U.S. in 2005 and was later promoted to lead North America and the Asia-Pacific operations after the company bought Software Spectrum in late 2006. McGrath was previously an 18-year veteran at IBM where he was most recently vice president of IBM.com Americas.

Insight's performance has suffered during the economic downturn, but the company was also battered on Wall Street after revealing that it would need to restate financials dating back to 1996 after discovering accounting errors.

The company's stock has dropped more than 50 percent since Feb. 6.

Earlier this month, Insight forecast fourth-quarter earnings of 11 cents a share on net sales of $1.2 billion. Analysts were expecting earnings of 27 cents a share, excluding charges, on $1.3 billion in sales. In January, Raymond James & Associates noted that Insight would be impacted by a dramatic decrease in sales to enterprise customers, which account for about 65 percent of the solution provider's revenue.

Shares of Insight closed at $2.71 Thursday, up 8 cents, or 3 percent. Its recent close of $2.63 on Feb. 25 was its lowest since January 1996.