“We are constantly adapting our business to ensure operational efficiencies, including evolving our services and shifting resources to meet the changing needs of our vendors and customers. “The action is related to our efforts to achieve merger synergies, but we will not comment publicly on further specific details,” a TD Synnex spokesperson told CRN.
TD Synnex on Friday laid off about 100 employees, just two months after the IT distribution giant implemented a voluntary severance program, people familiar with the matter told CRN.
Approximately 300 employees took advantage of the voluntary retirement plan, sources said.
The $60 billion distribution giant’s new job cuts are impacting a wide range of roles, including sales representatives, vendor business and solutions representatives, business development managers and finance personnel, people told CRN.
[Related: TD Synnex CEO To Solution Providers: ‘Think About Those Technologies Growing In Multiples Faster Than The Market’]
A TD Synnex spokesperson said in response to CRN’s request for further information that the job cuts are related to “merger synergies.” This was in connection with his 2021 merger of Tech Data and Synnex, now known as TD Synnex.
“We are constantly adapting our business to ensure operational efficiencies, including evolving our services and shifting resources to meet the changing needs of our vendors and customers. ‘s actions are related to our efforts to achieve merger synergies, but we do not comment publicly on further specific details,” a spokesperson told CRN.
The latest job cuts come after TD Synnex offered voluntary severance packages to U.S. employees in July, citing macroeconomic conditions and difficult industry trends.
“This was driven by the need to reduce costs due to current macroeconomic conditions, including challenging industry trends (primarily across the PC ecosystem), which you heard me mention on the earnings call last month. TD Synnex CEO Rich Hume wrote: Internal memo from that time. “Hiring freezes and travel restrictions helped, but they weren’t enough to get us where we want to be.”
TD Synnex’s voluntary severance program was available to U.S. employees who were 58 years of age or older and had worked for the company for at least five full years.
TD Synnex had approximately 23,500 full-time colleagues worldwide as of August, according to a company press release.
TD Synnex is scheduled to report third quarter results on September 26th.
Tech Data reported that for the second quarter of fiscal 2023, which ended on May 31, sales were down 7.9% year-on-year to $14.1 billion, but operating profit was $253 million.
The CEO of a 500 Solution Provider company, who requested anonymity, said he does not expect the small layoffs to impact the channel.
In fact, the CEO said that job cuts should be expected given the number of redundant positions created as a result of the Tech Data and Synnex merger.
“I’m not surprised,” he said. “These kinds of layoffs are inevitable when companies do large mergers like this. I think this is about right-sizing the organization with the right structure. Tech We have Data and Synnex sales reps and all the support teams, and this was in addition to Tech Data’s acquisition of Avnet. [Technology Solutions]. Does he really need three people chasing the same soccer ball? Unless you get some kind of synergy – systems, processes, people – if you merge, at some point your business model will no longer make sense and your people will be at their maximum. The cost will be . ”
Additionally, the CEO said many companies overhired during the technology sales boom experienced in response to the COVID-19 pandemic. “Many companies overhired during COVID-19 and are now cutting jobs because their business is not experiencing double-digit growth,” he said.
The CEO said the IT spending environment remains strong as customers continue to invest in digital transformation. “There are still projects that customers are interested in investing in,” he said. “In some cases, a customer will put off a transactional purchase in order to spend money on his AI.”
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