Distributor Express Data cut its workforce by approximately 15 per cent nationally on Tuesday, with retrenchment notices handed out to 38 staff in response to revenues failing to reach early expectations for the year.
Peter Masters, Express Data's national marketing manager, said the move was "one of those business realities" which impacted right across the business. Sales are down to the levels of 18 months ago and the staff numbers needed to be realigned accordingly, he said.
"The market is down generally right across the business," Masters said. "This is an adjustment to align the business with what is happening in the industry and revenue results.
"It is a result of this year's figures. Five months into the [financial] year revenues are not coming up to expectations."
Masters said all sectors were down on forecasts with the staff cuts coming mainly from the "operations" side of the business, not sales, and they were across all business units. The great majority of the jobs were lost in the Sydney head office of the Dimension Data-owned companyMasters was confident no more jobs would have to go but said the company was not expecting to see a turnaround in the industry's fortunes until the second half of the year.
"Nobody can predict too far into the future but no-one is predicting a turnaround in the first half of this [calendar] year," he said.