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By | Paul Kunert 27th February 2014 12:23

Mega-distie Ingram Micro cops to plans to axe jobs, padlock offices

Plans to save $100m a year by 'delayering' biz

Ingram Micro has confirmed that the "delayering" exercise that it was cagey about a fortnight ago will indeed involve redundancies across European ops as it centralises back-office functions.

The beefy tech wholesaler revealed earlier this month that it is trying to figure out ways to slash annual overheads by $100m, speed up decision-making and get its business in line with faster growing areas of the IT industry, including cloud and mobility.

To that end, Ingram today spaffed a list of plans to consolidate real estate and roles, with biz support functions such as HR, finance, information systems and operations.

"[It will include] consolidating transactional support by expanding the use of the Ingram Micro Shared Service Centre in Bulgaria through the transfer of additional country business-specific support functions as well as through the consolidation of activities from the Regional Accounting Centre in Spain," it said.

Ingram will no longer organise functions centrally at Euro HQ in Belgium. The Dutch business, for example, will become home to the European finance competence centre, Germany will be organising the Advanced Solutions business and France ops will take over European vendor management roles.

The warehouse in Trier, Germany will be shuttered – though the facility in Straubing will remain in operation – and the Benelux region will rely on the Tilberg site in the Netherlands as the Belgium shed is to be permanently padlocked.

Management support functions at the HQ will "gradually transfer" to various "country based and global competence centres", said Ingram.

El Chan always suspected that "delayering" was another shiny new euphemism for job cuts, and indeed it was.

"It is expected this transformation will impact a number of positions in various countries, Ingram Micro will be working closely with employee representatives through the region to consult on our plan and discuss a fair outcome from those impacted," the distributor said in a statement.

The company did not say how many roles will be impacted.

Two weeks ago, Ingram celebrated record breaking sales of $42.6bn for calendar '13 as operating profit edged up nearly three per cent to $172.6m. ®

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