The final number of compulsory job losses at technology distributor Exertis UK has been confirmed at nearly 400 positions. This figure is significantly lower than initial estimates, which had suggested over 1,000 roles were at risk. The conclusion follows a company-wide consultation process that ended last week, as the business restructures to become a specialist, independent distributor with a sharper focus on the gaming sector.
An Exertis spokesperson stated the consultation had been “challenging, but ultimately productive in the circumstances we inherited from our previous owner.” The company emphasized its objective was to mitigate hardship for employees from the beginning of the process.
Mitigation Through Voluntary redundancy
To reduce the number of forced layoffs, Exertis implemented an early voluntary redundancy program. The spokesperson confirmed this program was offered on terms above statutory requirements, aiming to give individuals more time to seek alternative employment. This initiative is credited with substantially lowering the final count of involuntary redundancies.
In addition to the redundancies, the company is in advanced discussions with another firm regarding the potential transfer of a large number of staff. This move is part of the transition toward a more games-centric business portfolio.
Background of Financial Struggles
The extensive restructuring at Exertis UK comes after several years of weak financial performance. According to industry sources familiar with the situation, the business had failed to generate sustainable profits and remained cash-flow negative well before its acquisition from parent company DCC.
Once a major player in the UK technology channel, Exertis UK has been operating with minimal resilience in a high-volume, low-margin market. Insiders report that profitability hovered around break-even for years and deteriorated further in the period leading up to the sale. Sources indicate the UK arm was lagging behind other, stronger-performing divisions within the wider Exertis group.
Management and Market Challenges
The UK business was widely regarded as underperforming and burdened with an overly layered management structure. This left it poorly equipped to handle fluctuations in market demand or ongoing pressure on profit margins. The initial restructuring proposals, which hinted at drastic cuts from a workforce of approximately 1,200, caused significant concern across the industry channel.
It is now understood that those early figures represented an opening position under UK employment consultation regulations, not a definitive outcome. The finalized number of fewer than 400 compulsory redundancies reflects the results of the subsequent negotiation and mitigation process.
Next Steps in Restructuring
With the redundancy consultation concluded, Exertis UK will now proceed with implementing its new business staffing model. The company’s stated goal is to emerge as a focused, specialist distributor. Attention will shift to completing the potential transfer of employees to a new employer as part of the strategic pivot toward gaming. The company has not provided a public timeline for when the redundancy process will be fully complete or when the new operational model will be fully in place.
Source: Mobile News
