Ingram Micro cuts jobs while reorganizing

Ingram Micro, one of the largest computer distributors, laid
off employees in its information technology groups this week as part of a
company-wide reorganization.

The company announced that it was cutting 1,400 jobs in March. This week it eliminated some administrative and management positions within its
technology departments, according to a company spokesperson, which include
e-commerce and Web strategies groups.

The distributor, which sells computers and related products to retailers,
has been hit hard by price squeezes in the PC industry. Ingram Micro has
reported shrinking earnings for the past two quarters.

Last quarter, the company said it would take a charge of $2.1 million for the reorganization, amid 10 percent lower earnings. The company declined to specify the number of employees affected.

Ingram Micro laid off the IT employees yesterday, the company confirmed.
Previous layoffs at the company have hit sales, marketing, and purchasing departments, said Cara Stewart, manager of corporate public relations.

"The IT department was not part of the first round of restructuring,"
Stewart said. "We decided that it needed to be streamlined more."

Affected employees will be offered a severance package based on their
position and length of time at the company, she said.