Feeds

Arrow Electronics to axe 1,000 staff

US disti warns of consolidation

  • alert
  • submit to reddit

Arrow Electronics has added its own job cuts warning to the day's casualties.

The PC components distributor warned it would axe another 1,000 jobs during the third quarter after it reported a Q2 profit nose-dive of 92 per cent.

The New York-based company posted net income of $7 million for the second quarter. Sales fell 21 per cent to $2.5 billion.

The company, which has more than 200 sales offices worldwide, said it would introduce cost-cutting measures aimed at saving it $100 million a year.

This included job cuts, consolidating its facilities and delaying certain projects.

Today's job cuts will add to Arrow's staff scrapheap - it has already laid off around 500 employees so far this year. The distributor, which has around 12,000 staff, did not say which facilities would be consolidated.

The company said computer products revenue fell four per cent to $6.9 million, but "strengthened toward the end of the quarter". Components revenue dropped 26 per cent to $1.8 billion.

"Although we are seeing some hints of the early stages of recovery from the depths of the recession in our mid-range computer businesses, we do not yet see similar signs in the components sector," said Arrow CEO Francis Scricco.

The company warned that it expected Q3 to be "somewhat worse" than Q2 due to a combination of OEMs and manufacturers still ordering at greatly reduced rates and the traditionally slower summer months.

Arrow was in good company with today's announcement - US telecoms giant Lucent Technologies also warned it would cut between 15,000 and 20,000 jobs, while UK outfit Invensys said around 2,500 staff would be laid off. ®

Related Link

Arrow statement

Related Stories

Arrow, Avnet hit profit skids
Arrow, Avnet carve up Veba
Lucent to cut another 15,000 to 20,000 jobs

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
Protecting users from Firesheep and other Sidejacking attacks with SSL
Discussing the vulnerabilities inherent in Wi-Fi networks, and how using TLS/SSL for your entire site will assure security.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.