Wholesale technology distributor Ingram Micro has confirmed that it is will close its South African business.
In a press statement, the company said that the decision was due to the relatively small size of its operations within the country.
It also cited the limited number of product lines that are available in South Africa as a reason for its decision.
Ingram Micro will continue to offer its services to South African customers from Europe, which it believes will allow it to “provide a more robust suite of offerings into the South Africa market.”
“These are always difficult decisions to take, however, we believe we will be able to better serve the IT needs of our customer and vendor partners in South Africa from our European and UAE operations,” said Ali Baghdadi, SVP and Chief Executive of the META region for Ingram Micro.
“With this move, we will be able to leverage established best-practices and current vendor relationships, particularly in the fast-growing DC POS and Cloud markets, to offer an expanded suite of products and solutions to our South African customers”.
The company said it is working with regulatory authorities to ensure a smooth transition for impacted associates.
“The company is providing career counselling, severance and other customary benefits to the associates,” said Ingram Micro.
It also said that it has started consultations under section 189 of the Labour Relations Act 66 Of 1995 with its employees to effect a proposed winding down of its operations in the country
Assuming all regulatory and legal clearances are received, the company expects to wind down its South Africa offices by 1st December 2019.
Ingram Micro has operated in South Africa since 2007 to provide procurement, sales, distribution, technical and repair support and logistics services.