Insight to slash 240 jobs

Corporate reseller to reduce US workforce by 8 per cent amid "softness" in tech sector

Resell giant Insight Enterprises has heaped further misery on the channel after last night announcing plans to slash over 200 jobs.

The mail order specialist confirmed approximately 240 positions will be cut in its native US, equating to 8 per cent of its local workforce.

Insight said the reductions are necessary due to the “expectation of continued softness in the technology sector”.

Rich Fennessy, chief executive at Insight, said: "This is a difficult action to take. However, given the continuing challenges in the technology sector, we feel these actions are necessary to reduce our cost structure and improve the affordability of our business model without affecting our ability to provide world-class technology solutions that help drive our clients' success.”

Insight said the cost-cutting actions, combined with a recent IT system upgrade, would shave $20m (£13m) from its North American operating expense bill in 2009.

The announcement comes a week after Insight revealed a 26 per cent year on year decline in net profit to $6.7m for its third quarter (channelweb, 7 November). Revenue increased by 5 per cent to $1.17bn.