Ingram Micro considers job cuts on EMEA slowdown
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Ingram Micro will likely initiate a redundancy and cost-cutting programme in EMEA if the consumer market remains stuck in a rut.
The IT wholesaler said that retail, which accounts for 25 to 30 per cent of its sales in the region, was "down substantially" in Q2 following three quarters of a "weak consumer story".
CEO Greg Spierkel said it may be forced to slash costs in reaction to the trading environment. "We are being very vigilant with costs, and we're going to continue to be so in the second half of this year because we don't see the conditions changing."
"I think we will take cost actions where we think it's appropriate and people actions where it's appropriate. But again, they'll be targeted," he said in a conference call with analysts.
He added European management will be tasked with directing more resources to growth areas, including the corporate and small business segments.
The last time Ingram instigated a job-cutting initiative was in early 2009, when it sacked about 8 per cent of its US workforce – some 300 heads. ®