Diagonal makes cuts
Reseller cuts jobs but denies rumours it is up for sale
SAP Premier Partner and security reseller Diagonal has cut jobs because of market conditions, but has denied rumours that it is up for sale.
Steve Fleming, group finance director at Diagonal, confirmed that most of the redundancies were in the firm's secure networks division, although a few were in other divisions.
He declined to say how many jobs were cut, although CRN understands it was in the region of 19.
"This review was prompted by recent events because the industry is not as strong as it has been in previous years. However, the company is not up for sale," he said.
"We have carried out significant restructuring and we have the team in place to take the business forward into the second half of the year."
Clive Longbottom, service director at analyst Quocirca, said the channel had shot itself in the foot in terms of security.
"There is a gulf of understanding between vendors, partners and end-users," he said. "Customers feel that what they buy should be secure and they shouldn't have to pay extra for it."