The threat of mass redundancies is hanging over Action Computer Supplies staff, as the reseller reorganises itself around the internet.
Henry Lewis, chairman of Action, said that certain functions will be closed down and outsourced. Negotiations are continuing, and he was unwilling to discuss details until a consultation process with affected employees has been completed.
Action has warned that the cost of remodelling its business will lead to losses of about £6m for the year ended 30 August. That figure will include operating losses of between £500,000 and £1m.
Lewis said that like the rest of the industry, Action had suffered from an unexpected slowdown in April and May. "We had hoped to remodel the business under conditions of growing sales," he said.
Action's £66m sales business was built from putting its catalogue business online, but now the company is transforming itself into a pure internet company, said Lewis.
The company is keen to recruit new internet suppliers and find ways of reaching new customers through internet partners.
It's first deals include reselling Network Associates' myCIO.com managed security service and SourceTrack's e-purchasing product. Action has signed to supply the customers of eZoKa.com, a start-up company for SMEs.
First published in Computer Reseller News
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