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Exertis employees face layoffs as the distributor shutters one of its U.K. warehouses.
September 18, 2023
Distributor Exertis has entered into consultation to lay off around 50 workers and close one of its U.K. warehouses.
It plans to move all its stock and warehousing activity to its National Distribution Center (NDC) in Burnley Bridge, Lancashire.
On Monday, Exertis managing director Tim Griffin informed roughly 50 team members at Exertis’ warehouse in Raunds, Northamptonshire, that they would be entering a 30-day consultation with their jobs at risk.
Last week the firm showcased the £90 million (US $111.5 million) distribution center, including its investment in its new pick tower and other capabilities. However, shifting focus to the center in Burnley Bridge, Lancashire, means cuts have to happen elsewhere, said Griffin.
Exertis’ Tim Griffin
“The downside of moving stock is, it’s got to come out of some other places. And unfortunately, I’m in one of those places today,” Griffin told Channel Futures.
Keep up with our telecom-IT layoff tracker to see which companies are cutting jobs and the ensuing channel impact.
“We were as transparent as we could be last week, but there is a consequence of consolidating in Burnley. Unfortunately, that’s what I’ve had to communicate to the team here today.”
The exec described the Exertis layoffs as “part and parcel of a wider investment.”
“I wouldn’t want it to appear that we’re slashing and burning,” he said. “It’s about a natural consolidation and leveraging the investments that we made up in Burnley.”
Griffin said that like other companies, Exertis has to be prudent about hiring and backfilling roles.
“To be honest, we’re very hopeful that the market is going to pick up in the beginning of the next financial [year],” he said. “We’re early on in the second part of the year for us. But if you think about seasonality, we’re just going into retail peak, and then we’ll have a B2B peak.
“But we’ve seen encouraging signs,” he added. “We’re taking share in retail; we’re not declining year on year, despite the market, which is encouraging. In B2B we’re seeing some really nice goals starting to be formed, which is encouraging as well. So I’m confident that there will be a better tomorrow, but we’ve got it all to play for the second half.”
In a statement, Exertis said it will support employees at risk of redundancy during the consultation.
“If the proposals go ahead, the business will offer impacted colleagues the opportunity to relocate if they can and wish to do so, as well as announcing a retention bonus for affected staff. Exertis will also provide a series of in-house courses on job applications, CV writing and interview skills to help colleagues … find work as seamlessly as possible.”
Contributing Editor, Channel Futures
Christine Horton writes about all kinds of technology from a business perspective. Specializing in the IT sales channel, she is a former editor and now regular contributor to leading channel and business publications. She has a particular focus on EMEA for Channel Futures.
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