Enterasys follows in competitor's footprints with staff cuts

Enterasys follows in competitor's footprints with staff cuts


Enterasys Networks has slashed over half of its Australian workforce since January, after the vendor revealed last week that it had set adrift a further 20 per cent of its staff.

Six staff might not sound like many compared to the mass retrenchments announced by some of its networking competitors, but Enterasys' latest cuts bring the total number of employees in Australia to 24.

"It was a strategic decision to reduce the cost structure of the company and best position Enterasys to go forward," said Sheldon Speer, newly appointed managing director of Enterasys Australia/NZ.

The cuts follow retrenchments in May which saw Enterasys trim marketing, channel and operational staff. Speer claims the latest redundancies were made from across the organisation, including sales, technical and administration departments.

Speer says the two rounds of retrenchments were made for different reasons.

"The May [cuts] were a performance thing with the operation down here [in Australia]. This one was a global directive to lower costs," Speer told ARN.

Most affected was the vendor's Sydney operations, however Enterasys' Perth office has been reduced to a single person.

Avnet Hallmark also lost one staff member, whose salary and position at the distributor was paid for by Enterasys. Speer claims this role will be replaced.

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