Ingram Micro slashes workforce

Ingram Micro today said it would shed 1,400 jobs and expected first quarter earnings would fall short of analysts’ estimates. Ingram Micro said it expected net sales for the 1999 first quarter to fall between $6.5 and $6.7 billion, up 26 to 30 per cent over the same period last year. The distributor said it would close its California-based consolidation centre, realign its sales force and create a merchandising organisation that integrated purchasing, vendor sales and product marketing functions. This would result in the job cuts. Some investors had been recently offloading computer stock amid fears that a glut of PC inventory could cover up growth in this quarter. Ingram Micro blamed the figures on Year 2000 fears and cautious buying trends in Europe, Latin America and Asia caused by continuing economic issues. Robert Grambo, Ingram Micro European executive VP and COO told The Register: "Ingram Micro Europe has no plans for a mass layoff as announced by Ingram Micro in the US." He added that the European operation would continue to evaluate working conditions and realign its business. The company would do this by "focusing on improving inefficient processes, increase the utilisation of e-commerce and reduce discretionary spending such as travel and entertainment," said Grambo. ®