Azlan cuts jobs amid rumours of buyout

Redundancies Workforce diminishes as speculation grows.

Struggling distributor Azlan has continued its spate of redundancies by axing a number of jobs in its product and services sectors, as it denies renewed industry speculation of an imminent buyout.

The 17 redundancies include Ian Edwards, sales manager of Azlan Express and UK marketing manager Collette Wade, who joined the company in June last year.

The job cuts follow the shock announcement at the end of last year that both Ed Arnett, group director of marketing and services, and Andrew Budd, group strategic marketing director, had become victims of Azlan's cost-cutting measures (PC Dealer, 17 December).

Barrie Morgans, chairman and CEO of Azlan, said: 'I make tough decisions when I have to. The number of redundancies is very small and we have to review plans for next year.' He added that the company was investing in a new set of skills and intended to market services as it does products.

The product business will now place all existing marketing teams within Azlan's vendor business to focus on its key supplier contracts.

Morgans also refuted widespread industry speculation that Azlan was the subject of a buyout. Rumours started last year when insurance software vendor Sherwood Insurance was named as a possible buyer for the distributor, but Morgans denied any talks had taken place between the two companies and stated there was no financial basis for the rumours.

'Financially, the balance sheet is stronger than ever and investors are not unhappy. I have never spoken to anyone at Sherwood as it is not a company I have any communication with,' he said.

Sherwood refused to comment on a possible buyout.

Ross Jobber, analyst at UBS, said: 'Azlan is still shrinking and it has had to change its distribution infrastructure, but I would be surprised if it were sold off.'