Insight Enterprises to cut US workforce by 8%

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Insight Enterprises to cut US workforce by 8%

Microscope contributor

Insight Enterprises is to reduce its US workforce by around 8% to account for the weakness in IT spending.

 

In November, the reseller rationalised headcount across the Atlantic by 240 and also merged its North America executive and back office functions. Combined with the latest cut of 270 staff, Insight expects to save roughly $65m in 2009.

 

"Like nearly all global businesses, we continue to be affected by the challenging worldwide economy," said Rich Fennessy, president and CEO at Insight,

 

"We are confident that even with these substantial reductions, we will be able to maintain our operational strength in this tough challenging environment," he added.

 

In the fourth quarter 2008, Insight saw revenues fall 10% to $1.16bn and profits fell 77.3% to $5.4m, including $3.2m in severance pay and $6.2m in foreign exchange losses.

 

The company has also conducted an internal review concerning trade credits that has revealed certain errors in trade credits from 1996, which is expected to result in the restatement of financials for 2007 and the first three quarters of 2008.


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