Ingram Micro to cut 1,000 jobs -->
By Jenny Spitz, CBS.MarketWatch.com
Last Update: 1:25 PM ET June 6, 2001
SANTA ANA, Calif. (CBS.MW) -- Ingram Micro Inc. plans to eliminate 1,000 jobs in its U.S.
operations due to softening demand in the information-technology industry, the technology
wholesaler said Wednesday.
Shares of Ingram Micro (IM: news,
msgs, alerts) rose 2 cents to $13.60 in
recent trading, off from earlier highs.
The job cuts will be implemented at all
levels, Ingram Micro said, adding it will
close three centers in California and will
downsize its Miami, Fla., distribution
center.
In addition, the company's product
management division will be
consolidated from six product categories
into four, its IT resources will be
reorganized, and its U.S. sales
operations will be restructured into six
groups, Ingram Micro said.
"The actions we take today will create a
more competitive cost structure, making
Ingram Micro even more resilient in the
IT marketplace," said Guy Abramo, the
company's chief strategy and
information officer, in a statement.
The Santa Ana, Calif.-based company
hopes to realized savings of $30 million
to $40 million a year via the restructuring
and job cuts. Ingram Micro said it will
record a one-time charge of up to $15
million against results for the second
quarter. |
