Ingram Micro retrenches senior managers under Manila plan

Ingram Micro retrenches senior managers under Manila plan

Confirms a slight modification at senior management level

Ingram Micro has retrenched several senior managers as part of its Manila plan.

Under the plan initially announced by Ingram Micro vice-president and managing director A/NZ, Jay Miley, 100 administrative jobs were to be moved offshore to Manila between July 2012 and April 2013.

The jobs were predominantly in the finance, licensing and administrative areas.

In July, under the first phase of the plan, 60 people in Australia were told their jobs would be made redundant.

A further 40 jobs were then to become redundant between October and March 2013.

However, ARN was made aware this week that at least three senior managers in outward-facing roles had been retrenched.

Ingram spokesperson, Liz Wolahan, said before progressing with part two of the Manila plan, the company had evaluated the needs of its business taking into account market conditions.

As a result there had been a "slight modification" at senior management level.

The people to be retrenched under the balance of the plan, including the managers, were informed last week, she said.

Under company policy she could not confirm the names of any staff who has been retrenched.

The 100 jobs lost in Australia will be matched by the creation of 100 new jobs in Manila.

Miley said in July that the offshoring of the positions followed the move of Ingram’s shared service centre in Kuala Lumpur to Manila.

The company had operated a shared service centre in KL since 2006 but finalised its move to Manila in late March/early April.

He said there were two reasons for the decision to offshore the positions.

“Firstly, given the competitive environment we operate in we have to keep a close eye on our cost structures,” he said.

“We also need to have a bit more flexibility in the services we offer and scalability around those services.”

When asked if the move reflected a tightening of the IM belt in Australia, Miley said that it was business necessity in line with company’s focus on sustaining a notable competitive edge in the marketplace.

He also pointed out that Ingram was currently making significant investments in its business and the marketplace rather than tightening purse strings.

“We go with the cycles,” he said, “but we believe it is a good time for investing. You wrote recently about our new warehouse, we’re investing in a new Web platform and in the local market in terms if the number people in face to face sales roles and business development roles.

‘We acknowledge the fact that people buy from people.

“Unfortunately, some of the backroom administrative roles don’t offer a competitive advantage so we have looked to offshore them.”

He underscored that IM’s Australian clients who use the services provided by these jobs would not be affected.

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