Dimension Data cuts 33 Aussies

Dimension Data cuts 33 Aussies

Summary: IT services giant Dimension Data has confirmed it retrenched 33 staff yesterday.

TOPICS: IT Employment

IT services giant Dimension Data has confirmed it retrenched 33 staff yesterday.


DiData CEO: Steve Nola
(Credit: DiData)

"Taking the decision to retrench staff was a difficult one, and we have lost some talented people from our business," DiData's Australian regional CEO Nola told ZDNet.com.au today.

"However, in assessing our capacity to invest in future growth opportunities for Dimension Data — most notably in IT services — we were required to make some cost cuts in specific operational areas."

Nola said the cuts were necessary to support the company's planned investment in managed IT services, which he said was a growth opportunity. "Even in times like this, when clients are cost-conscious, we're getting a fair amount of enquiries," he said.

DiData, which employs over 1,000 staff in Australia, as at September last year secured revenues of US$974 million wihin Australia, according to Nola.

For competitive reasons, Nola declined to say from which divisions the cuts had been made, and denied claims by sources that the deepest cuts were made to the arm that supports Microsoft Sharepoint projects. "There were a very small number of people out of that business," he said. "We see Sharepoint as a strategic product for us."

Datacentre and call centre staff were also amongst those cut, according to a ZDNet.com.au source, however Nola declined to confirm or deny this. He also declined to confirm whether key sales staff had recently quit.

Until yesterday DiData had maintained the position it was on the hunt for IT talent and was not known to have made redundancies.

The company has now joined the ranks of several other IT services firms within Australia that have laid off staff, including Optus-owned Alphawest, Oakton, UXC, HP/EDS and Optus.

Despite acknowledging customers would be tighter with investments in technology as a result of the economic downturn, Nola said DiData's ongoing revenues from managed services was still healthy and noted it had maintained a spot on the Australian Taxation Office's $55 million a year managed network services bid currently up for grabs.

Topic: IT Employment

Liam Tung

About Liam Tung

Liam Tung is an Australian business technology journalist living a few too many Swedish miles north of Stockholm for his liking. He gained a bachelors degree in economics and arts (cultural studies) at Sydney's Macquarie University, but hacked (without Norse or malicious code for that matter) his way into a career as an enterprise tech, security and telecommunications journalist with ZDNet Australia. These days Liam is a full time freelance technology journalist who writes for several publications.

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  • Where the Cuts Came From

    The low act of this..

    A large number of cuts came from the Customer Interactive Solutions department.

    Business Analysts, Engineers and testers!

    The company made their staff have an additional week of holidays at the start of the year because of "lack of work". Maybe in more trouble then letting on!

    Start of things to come!
  • Mother without job!

    This also included a mother on maternity leave!
  • Nola

    You can bet Nola and his level of management were never in doubt of retaining their jobs though. Imagine sack one at his level and you probably cover the wages of the 33 that were cut. Therefore one can take it for the team rather than the team taking it for the one
  • Just the start

    IT always gets it in the a**.
  • This is par for the course

    The company I work with asked consultants to take a month off without pay and sales 2 months comission only.
    2 weeks into the new year 8 people were retrenched.
    This is the way it is, companies have to ensure their future unfortunately the people they get rid of are often the wrong ones. Senior management who are on the highest salaries should be reviewed first, they didn't plan for the future and present the biggest reduction in wages overhead.
    Let's just hope that the panickers who started the mess have settled and can now focus on building rather than reacting stupidly.
  • Safety

    There is, as always, safety for sycophants.
  • and plenty of fat

    ...and with a GM for each division nationally and also at state level, it aint hard to identify the fat.
  • How does this balance to their recent investments?

    I find it strange that they lay staff off at the same time as they make major investments in other companies...

  • Because even now, tightening the belt is only for the populous, not the fat cats

    This is the work of the very same disgraceful types of businessmen and to a much lesser extent, women, whose greed got the entire world into this mess.

    Unfortunately, they can now even use their own mess as an excuse to do such things and continue to do as they wish, when they wish.

    For example, it has been widely reported that even last week, two very large US companies, after pleading with and being awarded, by the US government for $100's of b's in handouts, then had to be persuaded by the same government to drop their new orders for luxury jets, to carry themselves around in oppulence.

    As the old saying goes, these people are certainly not circumcised, as their is no end to the #$%^&*.
  • fats cats first!

    It is encouraging to see so many people are aware of why the world is in the mess it is at the moment.
    I see calls for fats cats to go first. Great!
    All one has to do is calculate how many "average" employees could be retained if ONE fat cat goes.
    For example, ONE Bank CEO (on $11 million) is roughly 220 (That's right - two hundred and twenty!) front counter staff...
    And which will show the greatest return on investment? Which will be ready and trained for when the world recovers?
  • Emergency Cost Cuts!

    Looks like bailing on a sinking ship to me - strip out as much short-term cost as possible and hope it keeps the fat cats afloat!

    Apparently they wont be doing Microsoft Sharepoint anymore as the team was dissolved with only existing projects being serviced.

    Stay tuned for a second round of deeper cuts in other parts of their business...
  • Do you know who the SharePoint people are?

    Currently looking for SharePoint skillsets
  • sharepoint

    All sharepoint people cut were the practice managers, the developers/coders are all still safe... for now
  • SharePoint people

    If you are looking for good SharePoint skillsets try OBS, Alphawest or DWS ... stay away from Dimension Data
  • Best thing ever

    I was one of the engineer's DiData laid off. I had over 3 months work full time in the pipeline so i was a little surprised to be told i was no longer needed. But its been the best thing ever as i've been given a decent payout and i now have 3 jobs to pick from (one is at a customer site) all paying more than DiData and is more aligned with what i want to do.

    Don't take it personally and just remember showing loyalty to ANY company is a waste of time, look out for yourself first and then the company.
  • Stay away from more than DD

    and D3
  • You aint wrong

    There are some very strong old boys clubs in many SI's where some give deep service given on their knees to senior management, therefore building layers of protection they wouldn't normally receive.
  • Well Done

    It's good to see Ex. DD people out there taking advantage of multiple opportunities. This company has continually overlooked those internal contributors and hired in from outside. The Sharepoint story is embarassing with great people having been moved on to validate middle management egos. Their replacements are now gone in this latest rounds

  • Corporate Evil

    I'm Ex DD Sales. Worked on main enterprise accounts. Churn appears to apply to more than route at DD. I was advised I had "one of the busiest positions" (admin) in the company. Not a mean feat for this company. I was soon to learn that this position was cyclical and as soon as they had burnt out the incumbent, they re-advertised.

    They advised on hiring I would receive 2 weeks fulltime training to begin with. This was fraudulent and misleading. I received 2 days. My only advise to DD employees. LEAVE. DO IT NOW. You only live once.
    And CEOs magic act of reciting forty peoples names at inductions he has yet to meet in person? Think he'd prefer a TV show - Deal or no Deal perhaps? Charisma is comparable. Loyalty to corprate greed will get you know where.