Insight has admitted that its disappointing third quarter results prompted a cull of top EMEA execs which saw five top leaders leave their positions, but insisted that it has no current plans to make wider redundancies.
As CRN reported last week, Insight confirmed ex-sales director Tony Brooker and IT services director Tom Nesbit had left the company and will not be replaced and sources told us this week that three more were headed towards the exit.
Frank Bitoun, vice president for global sales, Ashley Gatehouse, vice president for EMEA marketing and Gary Butters, UK enterprise sales director, will also leave their roles as part of the rejig and will not be replaced.
In its third quarter, Insight conceded that EMEA was a disappointment after it posted an operating loss of $3.8m (£2.38m) on sales which slumped five per cent annually to $263.6m.
Insight's senior vice president for human resources Peter Richardson confirmed the latest departures today and said its recent loss in EMEA drove the decision.
"[The loss] had an effect on the executive structure as you've reported," he said.
"We've made some conscious changes to restructure the team and align that differently which has meant some people leaving. Those execs had a good tenure and long tenure at the company so they will be missed in that regard, but it was time to change and align ourselves ready for the new president Wolfgang who starts on 6 January."
Former EMEA president Stuart Fenton announced he was leaving the reseller in April and will be replaced by Wolfgang Ebermann.
Richardson said Ebermann was top of Insight's list to replace Fenton, who worked hard to enlist Ebermann and worked closely with him during a handover period.
New client focus
Last week, Insight also batted off claims its staff were unhappy and leaving following a commission restructure. CRN was told staff rewards had been realigned to focus on new business instead of renewals and Richardson confirmed new accounts were a strong focus.
"[Staff] are still rewarded on renewal business but additional incentives are on net-new clients and growing the client portfolio. I think - not just in software... - we have stagnated over the last year or so in terms of active clients so to win and grow the business in terms of client numbers is very much part of our focus.
"Renewals are still important and client retention is also important but new clients and offering new technology solutions is very much part of [our] strategy."
He added that Microsoft's recent LAR rebate overhaul - which at the time Insight said would leave it out of pocket - also prompted the firm to realign the way it rewards its own staff similarly.
Rumours of redundancies at Insight have surfaced recently and Richardson refused to rule out the possibility that headcount will be chopped in the future.
"I can never say never, but I'd give that answer to any one of our teammates who ask me. [But] there are no immediate plans to make any redundancies on a pan-European basis."
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