Sources: More than one in three Equanet Bury staff on notice

New owner Kelway continues integration with duplicated back-office functions being eradicated, CRN understands

Up to 90 Equanet staff in Bury are reportedly on redundancy notice as the back-office functions of the formerly Dixons-owned VAR are integrated into new owner Kelway.

Sources report that just after the Easter weekend about 15 employees were put on notice, while another tranche – thought to number 74 – followed this week. Affected areas reportedly include licensing specialists, credit and finance and other back-office functions.

CRN understands that Kelway inherited a total of around 230 staff in the north west as part of the deal. It is not known how many of the staff on notice will ultimately be set to depart. Kelway announced last month that it will be opening a new regional hub somewhere in the Greater Manchester area to house staff from its new acquisition.

One onlooker said the job losses were an unfortunate but unavoidable part of the integration process, with numerous back-office roles sure to be duplicated. The source added that "Equanet had been poorly managed for some time" before its acquisition by its London-based rival.

"It is only natural that as the two companies come together there is going to be rationalisation, it is a perfectly natural part of the process," added the source.

A Kelway spokesperson confirmed that a number of staff had been put at risk of redundancy but refused to comment any further as the process is ongoing.