ScanSource will axe Euro staffers to save itself $3.1m a year
US distie plonks man in MD's chair, closes Euro service centre
Distie ScanSource is slashing jobs in Europe in a bid to shed $3.1m in costs a year.
The US wholesaler of point-of-sale kit, barcode scanners, comms stuff and security has elevated senior director of merchandising Rudy Meirsman to a newly created role as MD for Europe.
This will "provide focused leadership and operational efficiencies" to the region, said Buck Baker, interim president of ScanSource Europe.
The firm did not detail the number of jobs to be chopped but said the revamp includes the "elimination of positions to set the cost structure in line with current operations".
Another measure the firm will take to cut overheads is to shut its Euro support functions and centralise the function globally in the US.
The annual saving related to the restructuring, largely associated with the redundancies, is expected to yield roughly $3.1m, but the move will initially cost $1.2m in one-off charges including severance pay.
The distie reported a 4.5 per cent fall in sales to $747.7m for fiscal Q2 ended 31 December.
Turnover in the North America region went down three per cent but international numbers declined four per cent, although the outing in Europe was better than expected, the firm said.
Operating profit across the Atlantic declined 13.1 per cent to $23.3m due to lower sales volumes and fell in the international division to $1.2m from $5.3m.
Group net profit fell to $16.4m from $21.4m in fiscal Q2 2012. ®