IM move to cut 550 jobs

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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."