ScanSource Communications restructures in Europe

Comms distributor cuts headcount and centralises support in bid to save $3.1m annually

ScanSource Communications has cut its European headcount and is centralising some European support functions to the US as part of a restructuring drive.

The distributor is hoping the move will achieve annualised cost savings of $3.1m (£2m), most of which will come from the elimination of positions.

At the same time, it has also created a new managing director post for the European business, which focuses on vendors Avaya, Lifesize, Extreme Networks and ShoreTel. Rudy De Meirsman, who will fill that role, will be responsible for implementing a pan-European strategy for the firm.

ScanSource Communications' UK presence is based on its 2008 acquisition of MTV Telecom, although logistics were centralised to Belgium in 2010.

US-based parent company ScanSource, which also works in the point-of-sale market, expects to record a $1.2m charge in associated costs, including related severance expenses, for its quarter ending 31 March 2013.

ScanSource chief executive Mike Baur said: "The new scale of our operations fits with our present vendor and sales opportunities, while positioning us for future expansion as we add to our vendor portfolio and pan-European geographic reach.

"This strategy will allow us to be more efficient, while positioning our communications business unit in Europe for profitable growth."

The distributor said it will also move certain European support functions to centralised global teams in the US to gain efficiencies, but did not offer any specifics.