Damovo cuts back

Systems integrator sheds staff and asks others to reapply for their jobs

Systems integrator Damovo, a spin-off from Ericsson Enterprise's direct sales arm, has laid off staff and asked others to reapply for their jobs.

The company also announced last week that its UK managing director, David McKeigue, had resigned.

The firm said its restructuring was due to the transition from being a product supplier to a systems integrator.

Kirstie Young, head of human resources at Damovo UK, said the changes had made some jobs less relevant. "Only 13 people have been made redundant since January and about 20 in total may have to reapply for their jobs," she said.

Manny Pinon, sales and marketing director at distributor Norwood Adam, said: "Damovo brought McKeigue on as a general practitioner when in reality it needed a surgeon in the climate in which it launched."

A source close to the company said the changes were due to poor performance.

"The company is £11m down on [targets for] its last two quarters," he said.