​Redundancies issued as Sydney-based distributor goes AWOL

​Redundancies issued as Sydney-based distributor goes AWOL

Resellers left in the lurch as hardware distributor cuts majority of staff in cloud transition

Amicroe Australia has abruptly closed the doors of its Sydney and Melbourne offices, issuing a round of redundancies as the hardware distributor transitions into web and cloud-based services.

Sources close to ARN said the computer parts and equipment distributor is in the midst of transitioning away from its legacy business, resulting in the departure of senior management executives and staff on 30 January.

But when ARN attempted to contact the business on 28 February, numbers for both Sydney and Melbourne offices were disconnected.

This is also validated by a reseller source, which told ARN that they reached out to the Amicroe team on 27 February via email and failed to receive a response.

According to the company website, the company said it is “pivoting into new service areas”, with a full explanation unclear at this stage.

“Amicroe is in development on some exciting new initiatives,” a company statement read. “As you may have heard we have transitioned from our legacy supply model and are pivoting into new service areas.

“All existing retail product warranties will be treated in compliance with Australian Consumer Law requirements as per Amicroe’s RMA procedures, however be advised Amicroe is no longer accepting orders for physical products.”

As a result of the changes, Amicroe Australia General Manager, Steve Balfe, was also made redundant, with the exact number of staff departing unclear at this stage.

“The reason provided by company owners was that shifts in technology had necessitated a change in core business operations that would see the company move away from traditional IT component distribution after 35 years and into web and cloud based service activities,” Balfe told ARN.

Balfe said the redundancies follow the closure of manufacturing facilities in Irvine, California last year, alongside the shutting of offices in Canada and Europe.

“It was implied that Australia was left until last as it was the only profitable division worldwide under the current model,” he added.

“I have since been advised by remaining staff that the business has relocated from its premise in Artarmon, Sydney and moved into new offices in North Sydney."

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