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Dimension Data lays off 144 staff

Dimension Data lays off 144 staff

Services group Dimension Data (formerly Com Tech) this morning succumbed to the industry downturn and made 144 staff redundant in its Integration and Learning Solutions divisions.

Steve Nola, CEO of Dimension Data Integration, confirmed the retrenchments, saying that 126 jobs were lost in the Integration unit with a further 18 people cut from Learning Solutions.

The sackings occurred across the nation and represent "about 12 per cent" of the staff, Nola said.

"It was a very difficult thing to do," he told ARN. "We thought we might see some light at the end of the tunnel, but the reality for us is that we really had no other option than to make these staff cuts.

"If you want to have a continually successful business you have to have a clear picture of where your cost model is and where your revenue streams are at. The downturn in the IT industry has been quite severe. Those that haven't already made contingencies to match their expenses with revenues will more than likely have to do so very soon."

Express Data, the distribution arm of Dimension Data, was not affected by the cuts, Nola said. He also claimed that most senior management were relocated to new roles or to other parts of Dimension Data's operations. However, some long-term employees were among the redundancies.

Nola said that he could not forecast when the industry would get better, but he was confident that no further lay-offs would be required.

"It is happening all around us," he said. "We are not immune to the current market conditions. We have seen companies like Microsoft, Cisco, Accenture, HP and many more have to lay off staff.

"It is very much an industry thing rather than something specific to Dimension Data. We would be worried if the industry was growing and we were laying off people, but that is not the case."


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