Computer 2000 (C2000) has claimed it is not throwing in the towel on its operations in Eire, despite its decision last week to move its sales staff back to the UK.
Julian Klein, managing director of C2000, said although the move would cut costs, it was not due to poor sales in the Republic.
"We continue to be focused on Ireland; we see the slowdown affecting it less than the UK," he said.
C2000's 15 sales staff based in its Dublin office were last week offered the chance to transfer to the company's head office in Basingstoke. Klein said it was too early to say how many would accept. Those who do not will be made redundant.
He added that the company has run all back-office functions for its Irish operations, such as warehouse and logistics, from the UK for several years.
Paul Sangster, managing director of storage distributor Hammer, which is launching its own sales operation in Ireland next month, said he would not be surprised to see C2000 scale back operations in Ireland.
"Ireland is a much smaller market than the UK, and is also a very different market," he said.
"Distributors need to provide some proper service and value to succeed there. C2000's real skill is in supply."
Klein also admitted that C2000 has recently made two staff redundant from its UK operations. "These were roles that we felt were no longer useful to the organisation," he said. "That's two jobs out of 700."
Since the beginning of this year, C2000 has also reduced its headcount through natural wastage, with a reduction in the use of temporary staff, and staff not being replaced when they left, Klein added.
"I think we've done a very good job in the current climate of reducing the number of people in the business, without having to resort to wholesale redundancies, as other distributors have had to do," he said.
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