Synergy Plus has closed two of its branches in Canberra and Tasmania, as it sets to exit the low-margin product and desktop space.
As part of the changes its making to its business, it has retrenched about 35 sales staff, including its national sales director, Joe Arcuri.
“Effectively we’ve changed the sales engine of the business to start to reflect where we want the business to go,” Synergy CEO, Garry Henley, said. “We worked through it with Joe, and decided that the structure doesn’t support a sales director.
“Outside of our core customer focus, we’re retracting from the desktop market and retraining and hiring new staff focusing on an annuity business.”
All sales managers will now report directly to Henley.
“We’ve aligned our key existing reps across our top customers that produce a large amount of our business,” he said. “Its business as usual for our top customers, there’s no change there and we’ll continue to provide all of our products and services to them, but we’ll also start to focus more on our services play.”
Henley indicated there could be more staff cuts over the next few months.
“As the business starts to reshape over the coming months, there maybe some people that will be looked at,” he said. “But the major changes have been done.”
Henley said its ACT branch was a good performing business, but it was mainly focused on desktop and low margin products, which didn’t fit its services model going forward.
“We’ve decided that business will close in January,” he said. “The branch was successful but it was all low-margin product that was high-volume and high-revenue, and we’re moving out of that.”
Six staff will be affected by the closure and Henley said it was currently working with them, offering alternative roles.
It also closed its Tasmania branch, but it will continue to maintain an engineering presence in the state.
Henley could not disclose how much the desktop business contributed to Synergy’s overall figures.
“We’ve done our numbers and we believe the focus we’ve got now will make it a much more profitable business, quicker,” he said. “We’ve always wanted to fast track the service side and this is really putting the structure of the business behind that.”
Henley reiterated its focus on the mid-market, which he defines as the 100 -1000 seat space. HP, IBM and Cisco are some of Synergy’s major suppliers.
“In the new financial year, we’ll have a much stronger business, no doubt, but the next six months is about continuing to bed this down,” he said.