Electrocomponents, Dell implement cost-cutting moves

Electrocomponents, the parent company of electrical and
industrial components distributor RS Components has announced a
cost-cutting programme that includes reducing catalogue
circulation and eliminating jobs in the UK and Continental
Europe. On 22nd December, the company released an interim
management statement to the City, just six weeks after unveiling
its results for the half-year ended 30th September. It revealed a
sales decline in most of its markets, including a 6 per cent drop
in the UK.

Electrocomponents had initially planned to reduce costs by
£4 million, but in December it announced that a further
£15 million had to be slashed during the next fiscal year.
In a conference call with analysts, chief executive Ian Mason
said that the cuts will not “primarily” result from
redundancies, but that job losses will contribute.

Cost-cutting is also claiming jobs at Dell’s manufacturing
facility in Limerick, Ireland. The computer giant has confirmed
the migration of all production of computer systems for customers
in Europe, the Middle East, and Africa from Limerick to Poland,
where costs are appreciably lower. It expects to cut 1,900 Irish
jobs during the next 12 months, as it continues its $3 billion
(£2.05 billion) cost-reduction initiative.


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