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Tempe-based Insight Enterprises lays off 240
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Insight Enterprises, a Tempe-based distributor of information technology equipment and services, said Monday it laid off about 240 employees across the United States, about 4 percent of its worldwide workforce and 8 percent of its North American workforce.
Only about one-third of the job losses were in Arizona, where the company employs about 1,350, said Amy Kweder, manager of corporate communications.
Most of the trimming is taking place in sales and support offices across the U.S., she said. But none of those offices will be closed, she added.
The rapid slowing of the U.S. economy was blamed for the action. Last week the company reported that earnings from operations in North America decreased 43 percent in the third quarter.
“In the third quarter, the demand environment for IT solutions continued to be very challenging as the overall economy worsened, especially in September,” said Rich Fennessy, president and chief executive, in a written statement. “In this environment, as we finish out 2008 and head into 2009, we are . . . taking actions to reduce our base infrastructure costs and discretionary spending.”
Fennessy said the company expects to reduce net operating expenses in its legacy North American business in 2009 by about $20 million, or 6 percent.
Kweder said the company will offer severance packages and outplacement help for employees whose jobs are eliminated.
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