EXCLUSIVE: Dimension Data cuts 33 staff in Australia

Layoffs were in response to a tough local economy

Dimension Data has made 33 redundancies in Australia in response to a slowing local economy.

Dimension Data CEO, Rodd Cunico, said the layoffs, earlier this week, were in response to a challenging local economy and added the cuts were made across the board on a national scale.

He added that no particular department was affected. The company will have 1550 staff after the cuts.

Cunico does not expect any more cuts to happen in the next few months.

“One of the things we wanted to make sure was that all the action occurred in one day,” he said.

In general, the market is growing at a pace of about five per cent, and many clients continue to be conservative in an effort to remain profitable, he noted.

In addition to these measures, Dimension Data plans to continue to its push in the Cloud space, particularly its Cloud-as-a-Service offerings, building on its acquisition of OpSource in 2010. It also plans to benefit from the growing demand for Infrastructure-as-a-Service (IaaS) offerings.

In the public Cloud space, it has plans to further increase its presence in Eastern and Western US, Europe, South Africa, Hong Kong, and Japan, he added.

Going forward, Cunico predicts that local players will continue to reap mixed results in the Cloud space, as more and more consolidation becomes likely in the sector, and competition from the global players increases.

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