Auckland-based distributor Datamatic, which recently lost the Citrix and Tektronix agencies, expects to lose or shed up to another eight over the next few weeks.
Managing director John Forster says at least a dozen staff will leave as the company refocuses. "The company's been trying to handle far too many products and not doing a good enough job of them. I want to get the organisation better focused and what that comes down to is to do fewer things and do them properly. We will be deliberately shedding a number of agencies," Forster says.
Forster says he wants "a smaller, more focused group of people" at Datamatic. Some of the redundant Datamatic staff will move to fellow Kiwi distributor Renaissance, which is taking over the Tektronix printer agency. Forster says he expects to end up with about 20 staff. Renaissance managing director Mal Thompson confirms he is negotiating with Datamatic staff who have been dealing with Tektronix products.
Forster says he wants his company to focus on about 10 key agencies, including Cisco, Syquest, TEAC, D-Link, Visio and Dr Solomons.
Forster says Tektronix has evolved from high-end colour printers to more affordable products and wants to increase its volume of sales. "Tektronix wants to go where Hewlett-Packard printers go." Renaissance is an HP distributor.
He says HP is clearly the brand leader in lasers and many people have been trying to dislodge it without success. But he says the obvious place to start if you want to try is where HP is being sold.
Citrix Systems Asia-Pacific managing director Nabeel Youakim says the decision to end its relationship with Datamatic was a mutual one. But Forster admits Datamatic lost the Citrix agency.
"We lost it. We'd done very poorly with it. We weren't making any money out of it so it won't hurt us financially. I got here a bit to late, frankly, to do anything with that product. Citrix will become a lower cost, higher volume product because of changes occurring at Microsoft," Forster says.