Dimension Data confirmed that it has engaged in a Section 189 consultation process which will result in the retrenchment of approximately 480 employees.<\/p>\n
\u201cDimension Data can confirm that it has started the process of consulting with stakeholders and employees, with a view to implementing a new operating model aligned with announcements in March this year,\u201d the company said.<\/p>\n
\u201cThrough a Section 189 process we anticipate that approximately 480 employees may leave the business.\u201d<\/p>\n
\u201cWe are committed to an open and transparent process and employees will be provided the necessary support.\u201d<\/p>\n
These retrenchments form part of the process to consolidate the four brands of Dimension Data, Internet Solutions, Britehouse, and ContinuitySA into a single operating entity under the Dimension Data name.<\/p>\n
\u201cThe main reason for this change is to provide a single portfolio of services to clients and improve client experience, as well as to streamline operations and future fit the Dimension Data business,\u201d Dimension Data said.<\/p>\n
\u201cAs a result, our workforce requirements have changed. We intend to remove role duplication, and consolidate platforms, tools and processes into single instances, and flatten our structure.\u201d<\/p>\n
Dimension Data said that while reducing costs is not the primary objective of its new model, the effects of COVID-19 on the business has made these changes necessary.<\/p>\n
Responding to market requirements<\/strong><\/p>\n Dimension Data CEO Grant Bodley\u00a0previously said<\/strong><\/a>\u00a0the new operating model was necessary to respond to market requirements.<\/p>\n He said all the brands which will fall away were wholly-owned by Dimension Data, and what they offer the market will stay intact.<\/p>\n \u201cOur clients have always said to us they know these are 100% Dimension Data-owned companies and it is confusing at times to understand how they are all cobbled together,\u201d said Bodley.<\/p>\n Their clients said they want to buy products and services from Dimension Data and not multiple companies, he said.<\/p>\n Bodley acknowledged that there would be job cuts after the other brands were amalgamated with Dimension Data.<\/p>\n The company\u2019s outlook has changed since this statement, however, as he previously said these job cuts would not exceed 300.<\/p>\n \u201cThere is absolutely not a number. We are not looking to reduce the headcount by 5%, 10%, or 20%,\u201d Bodley said recently.<\/p>\n \u201cWe will go through the process and if we see any duplication or excess staff in the organisation, we will make the hard calls which are required.<\/p>\n This article originally appeared on MyBroadband. You can read it here<\/a><\/strong>.<\/em><\/p>\n
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