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Jobs slashed at Kalamazoo

Cost cutting exercise takes toll on head count

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Kalamazoo is to slash up to 99 jobs as part of a £2 million cost cutting scheme. The reseller said the decision, part of the ongoing Advantage 2000 review started by CEO Malcolm Roberts after his appointment last June, would include a one-off charge of £700,000. The reorganisation will run to the end of the company's financial year, 31 March 2000. Until then, "Kalamazoo will refine the organisation structure and reporting lines to strengthen its focus on customers", it said in a statement today. "Simultaneously, Kalamazoo will continue to reduce the level of costs in the business." According to Roberts, CEO at the company since last June: "We therefore intend to remove around £1.5 million to £2 million of net annual cost from the business." This includes redundancies across the business, with a Kalamazoo representative confirming the company was in a consultation period with employee representatives to finalise numbers. This is the second round of redundancies at the company this year. In March, it announced 130 job cuts as part of the same Advantage 2000 review. Most of the staff went from the group's base in Northfield, Birmingham. At the time, there was a one-off cost of £1.5 million, resulting in pre-tax losses of £2.2 million for the year ended 31 March 1999. ® Related Story Breakeven best scenario for Kalamazoo

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