Altech confirms job cuts

Altech marketing general manager denies link between retrenchments and the recent loss of Samsung as a contractor

Sydney-based distributor Altech Computers has confirmed rumours of widespread sackings as it moves a majority of its business online in a bid to rein in costs.

Altech general manager, marketing, Alan Macdonald, told ARN the company went through a round of retrenchments on Friday, but would not confirm the exact number of staff who lost their jobs. “It was a lot of people,” he said. “Like a lot of businesses right now we are in the process of restructuring and managing costs.”

Macdonald denied speculation the loss of several key contracts, including Samsung, was behind the redundancies and said he was not aware of any major brands putting Altech on credit hold.

“That’s an overstatement,” he said. “The announcement with Samsung is neither here nor there.

"Vendors change distributors all the time. Samsung left three months ago. It is not the reason, it is not the catalyst.”

Macdonald said the company was in the process of pushing 60-70 per cent of its business online and it was not in financial hardship.

“We are not awash with cash but as far as I know but as far as I know we are not in that situation at the moment,” he said.

“There’s a lot of money coming in and there’s a lot of money coming out.

"There’s no secret, I think the whole channel has had a quiet quarter.

“We are looking at pushing much harder for our online business.”

Macdonald said staff had been lost from all sections of the business.

“Obviously looking at reducing the head count, we don’t want to reduce our capacity in any one area,” he said.

“They were good people and they were across all the organisational functions.

"People from finance, people from technical, people from sales and marketing - not only one area.”

More about: Altech, Altech Computers, ARN, Samsung

Comments

EXcustomer

1

Whats funny about this is most of altechs business has been online since day one. You call up to place an order and they just push you to the website. That has been the policy from the beginning. From what ive been told 70-80% of altechs business is through their website. The other 20-30% is Sales reps doing deals with the big players in the channel market.

HappyCustomer

2

I don't find the online policy to be different between Altech and that of other rival distributors. The same can be said of Synnex and Ingram Micro whom all have very limited phone dealings with small to medium clients either. They all push to go online to save on manpower. If they've invested fortunes into their online system, why not? :) The only negative is that it does lose that personal touch that some customers prefer.

No-one can deny it has been a tough year for all businesses in the reseller channel, so I can understand that redundancies may be necessary to curb extra spending. It have been a tough decision for management there.

Steve Jobs

3

This story is like someone (Altech) being punched in the face by someone (Samsung) and trying to claim it didn't hurt.

Manga

4

The whole Australian market is lagging behind the level of service provided to customer, variety in goods and especially in quality vs. pricing. Altech by itself is nothing compared to the huge overhaul required to wake this economy up to what the rest of the world is offering. The excuse that Australia is an island is unacceptable in these times.

Stalin

5

This company has a history of generating reasons to fire employees to avoid paying redundancy for many years.

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