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20 Oct 2008
Networking distributor Westcon has become the latest channel stalwart to trim its UK cost base amid rumours of a decline in its voice business.
Westcon’s parent, South Africa-listed Datatec, last week confirmed it was making reductions to its operating cost base in Europe and the US “so that the business is sized appropriately for market conditions”.
CRN understands the distributor has put around 25 of its 450 UK-based staff on 30-day redundancy notice. All eight positions in its mobility-focused new product team are believed to be under threat.
Further reading
Sources close to events said the cutbacks had been prompted by weakness in Westcon’s Avaya and Nortel business, adding that its revenues with Cisco remain strong.
Dave Ellis, e-security director at rival distributor Computerlinks, said Nokia’s recent decision to scale back investment in its business mobility products may also have played a part.
“Westcon might have looked at Nokia’s strategy and decided it should re-allocate resources,” he said.
Westcon declined to comment.
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