Layoffs, a pay freeze and no management bonuses.
That's the news from RS Components in the UK as the economic downturn bites into the distribution market.
The company reorganisation sees 90 temporary staff leaving the company, 350 permanent roles being made redundant and 190 new jobs being created, thus leading to a net loss of 150 jobs.
The company's proposals include a redistribution of activities at the warehouses in Nuneaton and Corby. This will lead to an increased specialisation at each location and will create jobs at the Nuneaton facility.
There will be a reduction in staff at the RS trade counters in the UK and job losses too amongst the UK sales team. This, says the company, results from a decrease in sales volumes, a change in shift patterns at the trade counters and an increased use of marketing/eCommerce communications.
The company also plans an increase in efficiency in back office processes which will be enabled through exploring the benefits of a common systems infrastructure.The proposed redundancies are part of a worldwide cost reduction plan which parent company Electrocomponents announced in December to reduce global operating costs at £15m.
Electrocomponents chief executive Ian Mason said, "I greatly regret the impact these proposals will have on our employees and the communities in which we operate. We are making every effort to ensure that we provide support for those affected by these proposals. These decisions are taken in the light of the severe economic downturn and its effect on our business. Difficult though they are, I believe that the actions we are taking will make our business stronger in the long run."
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