Sydney-based distributor Altech Computers has confirmed rumours of widespread sackings as it moves a majority of its business online in a bid to rein in costs.
Altech general manager, marketing, Alan Macdonald, told ARN the company went through a round of retrenchments on Friday, but would not confirm the exact number of staff who lost their jobs.
“It was a lot of people,” he said. “Like a lot of businesses right now we are in the process of restructuring and managing costs.”
Macdonald denied speculation the loss of several key contracts, including Samsung, was behind the redundancies and said he was not aware of any major brands putting Altech on credit hold.
“That’s an overstatement,” he said. “The announcement with Samsung is neither here nor there.
"Vendors change distributors all the time. Samsung left three months ago. It is not the reason, it is not the catalyst.”
Macdonald said the company was in the process of pushing 60-70 per cent of its business online and it was not in financial hardship.
“We are not awash with cash but as far as I know but as far as I know we are not in that situation at the moment,” he said.
“There’s a lot of money coming in and there’s a lot of money coming out.
"There’s no secret, I think the whole channel has had a quiet quarter.
“We are looking at pushing much harder for our online business.”
Macdonald said staff had been lost from all sections of the business.
“Obviously looking at reducing the head count, we don’t want to reduce our capacity in any one area,” he said.
“They were good people and they were across all the organisational functions.
"People from finance, people from technical, people from sales and marketing - not only one area.”