North Pole Inc. Re-Organization

I am pleased to announce a significant milestone today in the continued evolution of North Pole Inc. Effective today, just in time for the start of the Holiday season, we are implementing a new organizational structure designed to keep us relevant with the new hyper-connected, global generation. To be very clear... our mission remains to make the world a better place than we found it. I believe that this re-organization will make us more effective in achieving that mission.

It is important to note that there are no job losses associated with this re-structuring. This is not about efficiencies, though efficiencies are important, but rather about being more connected with the world's children and more effective in spreading joy.

Our previous organization was functionally focused. To be closer to the markets in which the world's children live, we are re-positioning the organization to be regionally-focused. We will maintain functional centers of excellence and a process organization to ensure the appropriate level of consistency is maintained and best practices are applied.

My new direct report senior team will now consist of the following:

Jingle will remain as Chief of Staff but also assume the duties of Chief Operating Officer. The responsibilities of the COO are different than previously defined when the role was held by Candy. The COO is responsible for oversight of the various functional centers of excellence (Marketing, PR, Procurement, Production, Merchandising, Logistics) as well as Internal Communications, Legal, Government Affairs, Flight Operations, and the newly formed Process Excellence organization. The functional centers of excellence coordinate across various regions and drive best practices; however, each region is fully self-sufficient with their own dedicated functions. The regions retain full decision rights.

Candy will assume the responsibility of the North America General Manager. She will be responsible for Merchandising, Procurement, Manufacturing, Logistics, Marketing, and Public Relations for the United States & Canada.

Snowflake, previously the Chief Information Officer, will assume the role of General Manager for Central & South America. She will be responsible for Merchandising, Procurement, Manufacturing, Logistics, Marketing, and Public Relations for the Americas minus the US and Canada.

Ollie, former Logistics Director, has been promoted to General Manager of Europe and the Middle East.

Jolly, former Chief Marketing Officer, will serve as the General Manager for Asia-Pacific.

Merry, who recently served as Corporate Controller reporting to Jangle, will take on the role of GM for Africa.

Melody has been promoted to Chief Information Officer, leading the Information Technology function. She replaces Snowflake, who assumed the Central & South America GM role.

Star has been promoted into the newly created role of Global Design Vice President. She will be responsible for the design of all new products as well as the creation of the global line from which the regions will merchandise product.

Jangle will continue as the Chief Financial Officer. North remains the Vice-President of Human Resources as well as Reindeer & Elf Affairs. Both will continue to report directly to me.

I am excited about these changes. I believe that we now have the organization required to move forward into the next decade. As always, we will remain open to change and evolve as the world's children continue to change and adapt to the world we live in. The one thing that will always remain constant though at North Pole Inc is this... we are committed to leaving the world a better place than we found it.