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Ergo Computing, the Nottingham-based OEM and VAR, has announced a restructure which will involve job cuts in warehousing and production.
The company – which was acquired by VIP Group at the start of this year – will let 20 per cent off its staff go, bringing the employee count down from 65 to around 52.
All staff affected have been offered other positions within the group.
Ergo’s warehouse is 6,000 sq ft while VIP Group’s Warrington facility is 100,000 sq ft, so the decision was made by Ergo’s board to make the latter the central production facility for Ergo going forwards.
While Ergo previously focused on notebook and production of mobile computers, marketing manager Dave Ayling says it has recently been enjoying a growth in desktop, and so moving production and warehousing to the Warrington facility will be better for the firm in the long run.
He also said that Ergo is actually enjoying growth.
"We’ve had a strong push with Ergo sales this year – we’ve just had our strongest quarter in a couple of years [from July to September 2014]. We’ve been activating hundreds of new customers but that also means we’re pushing through a lot of units of PCs, while Ergo was predominantly mobile-focused," Ayling told PCR.
"In Warrington we do about 17,500 units per month – a mixture of desktop as well as mobile and all-in-one. Ergo can do about 22,000 in a year, so we’re making a big investment in the Warrington warehouse over here.
"We are also recruiting at the Warrington office at the moment. We are going to be doing more integration work there because of Ergo. We’re gearing up for another peak across the group."
In a statement sent to PCR, Ergo added: "VIP Group has the largest PC manufacturing facility in the UK which will enhance Ergo customer’s experience and value.
"There will also be a benefit from a much wider and consistent stock portfolio held in a purpose-built 100,000 square foot distribution centre. Some shared services will also be centralised. Ergo commercial operations continue to be located in Nottingham.
"Should customers have any questions, please email Ergo’s contracts manager Wendy Sissins at wendys@ergo.co.uk."
Ergo is part of VIP Group which also consists of distributor VIP Computers and systems builder CMS Computers.
