INGRAM MICRO TO CUT 550 JOBS

[Anonymous]

IM move to cut 550 jobs
 May 05

ingram
micro (IM) is cutting some 550 jobs as part of
a restructuring and consolidation process that it expects will generate savings
of about $10 million in 2005, and annualised savings of $25 million from 2006.

A key component of the restructuring plan, which is anticipated to cost
about $26 million on a pre-tax basis, is an outsourcing agreement that will move
services and support functions outside North America where it costs less to do
business.

As many as 550 jobs, or 20 per cent, will go from the
company’s north American operations, the company said. The outsourcing will
affect positions primarily in customer service and vendor management. Field
sales and management positions will not be affected, it added.

Keith
Bradley, president of IM’s north American business, said: “We will gain
efficiencies and greater flexibility in our cost structure while maintaining a
strong focus on developing innovative services and solutions that benefit our
customers and vendor partners. This plan supports our key business objectives
and helps us deliver our expected operating income targets.”

[Author]

May 18, 2005 at 11:18 AM