Less than a month after hiring a new UK head, audiovisual integrator Verrex has announced a restructure and is believed to be closing its UK business.
The US-headquartered videoconferencing, collaboration and presentation technology and services specialist appointed Jonathan Foot as UK sales director in late July. However, "downsizing" across its US, EMEA and Asia-Pacific operations has begun, with the closure of its UK office in the City of London by the end of 2012 rumoured to be on the cards.
Thomas Berry Jr, president and chief executive of Verrex, said that continuing its global operations and expanding were likely to remain difficult due to the current "economic headwinds".
"[That is] specifically in international regions, and coupled with our desire to continue to grow domestically [in the US]. Therefore, we are proactively implementing changes to realign our focus on growth areas in the US in order to free up resources to invest in our future," Berry said in a statement.
"The company, our clients, vendors and employees will benefit from a clear focus and realigned strategy. We remain very strong in US corporate hubs including New York, Boston and Houston and will continue to serve clients globally through key alliances."
The company said that markets such as China and Europe "presented economic challenges" when it came to achieving profitability. "Delinquent" client accounts also contributed, according to the Verrex statement.
"These are difficult but necessary decisions. The restructuring will result in stronger performance in the US and will ensure sustainable growth," Berry went on to say.
It is believed that some redundancies may have already taken place in the UK.
Verrex, founded in 1947 by the Berry family, kicked off its European operation in 2008 with an EMEA headquarters in Hertford, and a London office now on New Broad Street in the City. The EMEA managing director is James Shanks.
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