270 Gone In Insight's Second Layoff In Five Months

270 Gone In Insight's Second Layoff In Five Months

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By Scott Campbell, ChannelWeb

7:11 PM EDT Fri. Apr. 03, 2009

Insight Enterprises plans to lay off 270 employees, or roughly 8 percent of its North America workforce, as part of further cuts in a restructuring plan to offset demand challenges in the market.

"Like nearly all global businesses, we continue to be affected by the challenging worldwide economy," Rich Fennessy, president and CEO of Tempe, Ariz.-based Insight, said in a statement. "We are confident that even with these substantial expense reductions, we will be able to maintain our operational strength in this tough economic environment."

The moves will save the company about $30 million. The company also announced cost-cutting moves last November. Insight expects total operating expenses to be reduced by about $65 million, according to Raymond James & Associates.

In November 2008, Insight laid off approximately 240 U.S. associates and announced streamlining steps such as merging its corporate and North America executive and back-office organizations.

"The vision and strategy that have driven our growth continue to be vital to our success, but we need to ensure that our organization and cost structure are aligned to the current worldwide economy," said Fennessy in a statement.