Ingram UK aims to avoid enforced job cuts
Ingram Micro UK hopes to reduce its workforce through natural wastage following its parent company's decision to axe 1000 employees in the US last week.
Ingram Micro UK hopes to reduce its workforce through natural wastage following its parent company's decision to axe 1000 employees in the US last week.
The job losses, 13 per cent of Ingram's US workforce, will also see the closure of one distribution centre and two returns-processing centres in California. Ingram hopes the cuts will save it between $30m and $40m annually.
Kevin Murai, president of operations at Ingram US, said: "The process improvement was spearheaded by the US group. As a company, we share best practices around the world, with most breakthroughs happening in the US. As time goes on, each region will look at what we've done in process change and decide whether or not it is appropriate to that specific market. They will make an independent decision."
Meinie Oldersma, Ingram UK's managing director, backed Murai's comments. "He has made a general statement which I agree with, but all the evidence suggests that Europe is doing better than the US right now," he said, adding that he hoped "high attrition rates" within the firm will mean that no staff cuts are necessary.
"Ingram implemented a recruitment freeze very early this year, and that is paying dividends. The company also has high staff attrition rates, which were around 20 per cent last year, and while this is higher than in other industries, it will help us in 2001. Still, this is never a guarantee and we have to keep our options open. We will do everything we can to keep staff on," said Oldersma.
Ingram rival Tech Data has laid off about 500 US workers so far this year, mainly through attrition.
Nigel Judd, general manager for marketing at UK division Computer 2000, commented: "Everyone has to tighten their belts and look at their resources."
He remained confident that the distributor would not be making any UK cuts in the near future. "So far there are no plans for any layoffs," he said.
Also published in Computer Reseller News