Systemax axes 50 staff in Scotland
Online reseller consolidates sales operations at its Misco subsidiary
Online reseller Systemax Europe has axed 50 staff in Scotland in an attempt to consolidate sales operations at its Misco subsidiary.
The company will hold on to a 70,000sq ft warehouse in Greenock, but sales will now be handled by the firm's head office in Wellingborough.
"This is a logical progression. We are not in trouble, we are consolidating our operations," said Terry Shaw, chief financial officer at Systemax Europe.
For the nine months to September 2003, Systemax Inc, the NYSE-listed parent company, reported sales of $1.2bn and profit of $5.1m. Misco's annual turnover is around £90m.
"We've just moved to new offices in Wellingborough, where there is room for expansion," continued Shaw.
"Of the remaining 600 staff in the UK, about 300 are customer-facing. At the moment they are absorbing the workload of the redundant staff." Shaw said that Greenock staff were offered relocation.
Chris Williams, a senior analyst at credit rating firm Graydon, confirmed the redundancies but added: "Systemax doesn't seem to be doing too badly at all."
"Misco came from an office supplies background," said Les Billing, managing director of distributor Microtronica. "It is now a corporate e-tailer and aiming more at the corporate market."
Systemax operates from sites at Greenock, Wellingborough and Wathamstow, which also houses sister firm Simply Computers.