Tech Data Cuts Staff, Restructures Sales

VARBusiness

The internal restructuring and resulting layoff of 21 personnel are related to Tech Data's earlier announcement about plans to consolidate its specialized business units (SBUs). As part of the move, the distributor repositioned its SMB-focused solution provider network, TechSelect, underneath the company's inside sales umbrella.

The company said it believes moving TechSelect closer to sales personnel will provide "stronger daily interaction" between Tech Data and its SMB solution providers, a company spokesperson said. Previously, Tech Data's business development and outsourcing teams oversaw TechSelect.

Among the personnel changes, the distributor reduced its sales team by 17 people, almost half of which were management level. The company also eliminated four sales positions in its integration services division.

The moves were designed to increase the company's focus on VARs serving small to midsize businesses, a Tech Data spokesperson said. The reorganization further increases the company's efficiency by combining some areas that don't require as much management depth, the spokesperson added.

The integration services reduction was attributed to lower demand and comes during an industrywide slowdown in the PC market segment. Tech Data plans to leverage existing leadership talent in those aspects of the business that provide the greatest return and future opportunity for Tech Data, the company said.

One of managers laid off was Mike Seferyn, vice president of outsourcing sales and services, a Tech Data spokesperson confirmed. Seferyn headed up the TechSelect program. As of now, his responsibilities will be handled by a handful of various Tech Data managers and directors, including Stacy Nethercoat, vice president of inside sales and services; Annette Tebor, director of TechSelect; and Jeff Fowler, Tech Select program manager. With all the reorganization, certain TechSelect members are growing concerned about the future of the reseller network.

"I understand Tech Data is doing the right thing fiscally because of the slowdown in the industry," said a key TechSelect member who asked not to be named. "But generally, people are fed up and there's a lot of discontent among the membership."