Creative Labs is shutting down its Australian offices and relocating local operations to its Singapore regional head office in response to the current economic climate.
The change in business model will occur steadily over the next couple of months and result in a small number of local layoffs. Creative Labs is an Australian subsidiary of Singapore company, Creative Technology Ltd.
“The change in business model will help streamline sales and increase cost efficiency, in turn helping to stay ahead of the game in today’s market,” a company spokesperson said.
“As a result, Creative Labs will be closing its offices in Australia and, inevitably, a small number of staff locally will be made redundant accordingly.”
Creative Labs will maintain its presence in stores through distribution partners including Altech Computers and Multimedia Technology, as well as its online retail partners.
“The core sales function will remain on the ground and essential support services will be relocating to Singapore. Maintaining and growing Creative’s brand presence will be a key focus for progression in the times ahead,” the spokesperson said.
Creative’s country manager, Bernard Koh, said in a statement that Creative had been monitoring the market closely and taken steps in advance to streamline its sales distribution model.
“We believe that by changing our business model flexibly, we will better serve our customers and partners,” he said.
Despite the widespread cutbacks, ARN’s first Business Index found that the IT industry is remaining positive despite the tough market conditions.