Redundancies strike at Matrix
Reseller group parts company with two directors
Matrix Communications Group has played down the implications of recent redundancies after the reseller group parted company with two directors.
Chris Lee, group finance director and David Grant, executive director for integration, have both resigned while “managerial reporting lines are also being shortened” following the sale of equIP (CRN, 6 February).
Ian Smith, chief executive of Matrix, told CRN: “Redundancies are being made, but being replaced by new recruits. If you bring eight companies together in nine months there is always duplication and you lose roles.”
Last week Matrix reported group turnover up 413 per cent to £54.4m in 2005 from £10.6m in 2004. However, £34m is sourced from businesses acquired during 2005, including Network Partners, Harrier and the recently offloaded equIP. Smith labelled the year “challenging” for Matrix, but said the firm is now preparing for its development into a Virtual Network Operator (VNO).
“Having spent six months consolidating acquisitions and developing to become a VNO to offer managed services, we will be making additional acquisitions,” added Smith.
Martin St Quinton, chief executive at Azzurri, said Matrix was doing the right thing by becoming a VNO.
“I can understand why Matrix has offloaded its distribution arm. We have built our business by acquiring resellers and we would never be
interested in buying a distribution business,” added St Quinton.