Ingram Reorg. To Generate $25M Annual Savings

Santa Ana, Calif. — Computer products distributor Ingram Micro plans to outsource certain work functions by the end of 2005 in order to improve operating efficiencies, as well as realign and consolidate select business operations. To this end, the company will move transaction-oriented service and support functions — including selected North American positions in finance, customer service, vendor management, technical support and inside sales — to an outsource provider. At the same time, Ingram Micro plans to eliminate 550 jobs, or 20 percent of its North American staff. Outsourcing and other actions are expected to result in annual savings of $25 million by the first quarter of 2006. Total costs are estimated at about $26 million, of which about $5.5 million was incurred in the first quarter of 2005, with the remainder recorded through the fourth quarter.