© andrzej thiel dreamstime.com Electronics Production | October 26, 2012
Avnet cutting costs – layoffs expected
Electronic component distributor Avnet will be laying off. The company has, like much of the industry, been hit by weaker demand as customers hold back orders.
In its fiscal report, Avnet said it plans to reduce costs to face an increasingly slow moving market. "If we are making cost reductions, it ends up actually impacting our headcount," Chief Executive Rick Hamada told Reuters, adding that 70 percent of the company's expenses are people related. The company presently employs around 17'000 people, down from 19'100 this June. The new cuts will be less drastic than previous cuts. However, the headcount of the company will very likely be affected, Hamada told Reuters. There are no specific numbers regarding how many people will be affected by such measures.