UK-based accounting software vendor, Pastel has downsized its local operations over the last two months, skimming three staff from its local sales team, including channel development manager Les Kentera.
While the move is being read by the market as a result of poor sales, Pastel's general manager, John North said the rationalisation is an overhaul to achieve more product movement through the channel.
"We want to focus on the dealer channel," he said. "As a company we had unconsciously moved to more of a direct model. We were selling 30 to 40 per cent or our product direct, a figure which was growing and we didn't want that."
North refutes the suggestion that the redundancies are a sign of Pastel hurting however, he admits the company can't afford to carry any fat at the moment.
He feels it is more cost efficient for Pastel to leverage off the dealer channel for sales and has filled the vacant positions with technical staff promoted from within Pastel ranks to support dealers.
Meanwhile, the industry remains sceptical about Pastel's reshuffle as the accounting market gets increasingly cluttered and players are squeezed into non-existence.
"The only reason you would sack sales guys is because of weak sales," says one accounting reseller.
And, speculation suggests that Pastel is not the only accounting software vendor that is experiencing pain in the current economic climate.