Mitel lays off 160 staff

Vendor blames poor market conditions

Mitel has axed over 160 of its 2,500 staff worldwide in a move the vendor is blaming on poor market conditions.

Rumours are that Mitel has made the cuts from its direct sales arm, which is responsible for sales to FT250 UK clients.

But a Mitel representative refused to confirm from which part of the company employees had been laid off.

"If it is the direct sales staff, it's bad news for them but good news for resellers," said one distributor who requested anonymity. "It means Mitel's resellers get to have a crack at some big accounts."

Mitel refused to be drawn on the speculation, and referred to its positioning statement.

"In response to current market realities Mitel Networks has undertaken measures to streamline operations and position itself for long-term growth. Actions have been taken across the board to reduce costs and optimise operational efficiency. Core to this action will be a 6.5 per cent reduction in the global workforce," the statement said.