Integration company Dimension Data reduced its staff numbers by about 7 per cent this week with 56 middle managers and administration personnel laid off. An undisclosed number of contractors also had their agreements terminated in the restructuring.
This move comes one month after the company moved to a national management structure, moving away from "branch-based silos", which previously operated in each state, according to Merle Singer, Dimension Data's director of marketing.
Singer told ARN that the industry slowdown has affected the company, formerly known as Com Tech, in much the same way it has affected its suppliers and competitors.
"It is about making sure that our business model ensures that we have a profitable company moving forward," Singer said. "Obviously it is not very nice for the people that are going and for those that are staying, but our focus is on the need to continue to operate as a successful and profitable business that meets the needs of its customers.
"I guess we have always believed in being proactive and not reactive in what we need to do to maintain that focus and that is very important from a fiscal point of view."
Singer said that from a management point of view, "none of the senior executive team has been let go" and that the redundancies were "mainly from the eastern seaboard". Staff numbers are "about 800", she said and no more staff cuts are expected under the revised company structure.
"Dimension Data has always been a fiscally responsible organisation, making sure that it is delivering value to customers, looking after the staff it has and working with market-leading vendors," Singer said. "That doesn't change in the light of this restructuring."
This is the third time a division of the Dimension Data group in Australia has realigned its costs with revenues since the Shein brothers' companies consolidated under the wing of the South African organisation.
Since the heady days of the late 1990s, Dimension Data was forced to lay off 144 staff (12 per cent of its workforce) in September last year and in February this year distributor Express Data let 38 staff go (15 per cent).
Prior to being fully assimilated into the global Dimension Data group, Com Tech online made 30 staff redundant in May 2000.