DSGi Business merges sales teams

More senior managers said to be leaving reseller as a result of latest rejig

DSGi Business is remaining tight-lipped on rumours that it has laid off another small batch of senior managers as it prepares to merge two of its sales units.

According to insiders, the reseller is combining its Small Business Unit with its midmarket-focused Key unit as part of its ongoing cost-cutting drive.

CRN understands the move has resulted in a small number of senior management casualties, including Equanet veteran Guy Beaudin, who wrote the VAR’s public sector bids.

DSGi Business refused to confirm the speculation, saying it “will not comment on rumour and speculation”.

Martin Dorchester took the reins of DSGi Business in November following the departure of chief executive Jerry Roest.

Onlookers claim Dorchester is keen to focus on the reseller’s traditional product business while jettisoning non-core activities.

One distribution source, who asked to remain anonymous, said: “DSGi Business had a lot of remote office locations and a very complex structure which costs money. The new chief executive is starting to take the complexity out of the model and getting back to basics which is definitely the right move.”

Parent DSG international this month announced plans to shave a further £20m from its cost base in its fiscal 2009 as it moves to counteract declining sales. DSGi Business laid off around 50 staff last Autumn in response to “challenging” market conditions.