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Exclusive: Avnet slashes jobs as part of major restructure

Brian Karlovsky | May 22, 2014
Avnet Technology Solutions has undertaken a major restructure of its operations in Australia, resulting in significant job cuts as the company reacts to a decline in server and storage sales.

Avnet Technology Solutions has undertaken a major restructure of its operations in Australia, resulting in significant job cuts as the company reacts to a decline in server and storage sales.

A source told ARN about 20-30 jobs are to be cut in the process, which began the week before last, and was finalised by the end of that week.

However, Avnet vice president and general manager A/NZ Darren Adams would not confirm the number of people who would be affected by the restructure, but did confirm that it was happening.

Former Avnet sales director Chris Ford has already left the company to take up the role of general manager at the Frame Group.

Adams told ARN there was no pressure from overseas to restructure the business, but that it was driven solely by the A/NZ leadership team.

"This began for us fairly recently," he said

"We did an off-site QBR (quarterly business review), we had some IDC data and we also had our own performance data.

"Taking all of that feedback we thought there was an opportunity for us to improve the way we did things and the leadership team came together in April preparing, and looking at what we could do better."

Adams said all the data was telling them of a "considerable decline" around servers and storage.

"All the major suppliers were declining in 2013, and with our heavy focus on servers and storage that was definitely on our minds, we looked at our own internal profitability."

The restructure will see seven business units reduced to four, and the sales teams will be hit hardest with job cuts.

The company has merged its sales and services units, and appointed Mark Johnston as the new sales and services director to lead this new unit.

"We have merged our field sales and our services units together because we see a lot of leverage from our services business around Cloud and integration," he said.

"Going forward we want to invest more resources to drive increased penetration for our partner community.

"We want our partners to understand the difference to what we offer compared to Amazon and Azure."

Adams would not be drawn on any further staff rationalisation and said it would be "impossible" for anyone to accurately speculate on the specific number of employees who would lose their jobs.

He said the were no plans at this time for further job cuts.

"It was a bottom-up restructure, but there were some parts of business that were touched more than others," he said.

"There was some movement in the sales area, there was some movement at the leadership level. We also had some in various other groups leave as well, but nothing major.

 

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