Tech Data Lays Off 30 In Education, Logistics Divisions

Tech Data

"Our staffing levels were over our capacity requirements. The individuals were notified this morning, and of course we are offering outplacement assistance and severance packages," said Lawrence Hamilton, senior vice president of human resources at Tech Data.

Tech Data has about 3,100 employees in the United States, down from about 3,700 at this time last year, Hamilton said.

"It's an awfully difficult situation, but we believe at this point in time, our present staffing is acceptable as long as we can sustain our current run rates," Hamilton said. "We are seeing some signs of stability, and the general economic indicators are pointing to a recovery. We hope it sees its way into our industry."

Tech Data laid off 160 people last December and also has postponed capital expenditures, reduced travel and other discretionary spending and closed one building at its Clearwater campus to cut costs.

Tech Data beat analysts' expectation in the fourth quarter ended Jan. 31, but saw earnings fall 32 percent.

The distributor earned $36.5 million, or 63 cents per diluted share, in the fourth quarter ended Jan. 31, compared with $52.7 million, or 92 cents per diluted share, in the year-ago quarter. First Call had projected 61 cents per share.

Sales were down 22 percent to $4.16 billion, compared with $5.32 billion for the same period last year.