Electrocomponents: Proposed changes to the UK


29/01/2009

Electrocomponents plc, trading in the UK as RS Components Ltd based at Corby, today announces proposals to release 90 temporary agency staff, make 340 permanent roles redundant and create 190 new positions, redeploying those at risk wherever possible. These proposals result in a net reduction of 150 roles in the UK and are subject to consultation.

The proposed redundancies are part of a worldwide cost-reduction plan announced in December to reduce global operating costs by £15m (5%) in response to the severe economic downturn. Other actions have already been taken to reduce costs across the business. To further minimise the number of job losses, additional measures proposed include no management bonuses and a freeze on salaries.

The cost-reduction plans in the UK contain a number of proposals including:

  • Redistribution of activity between the two warehouses in Corby and Nuneaton - this will lead to increased specialisation of activity in each location and a growth in the number of jobs at Nuneaton.
  • A reduction of the sales force and trade counter staff - this results from a decrease in sales volumes, changing trade counter shift patterns and an increased use of marketing/eCommerce communications.
  • An increase in efficiency of the back office processes - this will be enabled through exploiting the benefits of our common systems infrastructure.

Commenting on the proposals, Electrocomponents' Chief Executive, Ian Mason, said, "I greatly regret the impact that these proposals will have on our employees and the communities in which we operate. We are making every effort to ensure that we provide support for those affected by these proposals. These hard decisions are taken in light of the severe economic downturn and its effect on our business. Difficult though they are, I believe that the actions we are taking will make our business stronger in the future."

Enquiries:

Dominic Fry, Rob Morgan, Tulchan Communications 020 7353 4200

About RS Components

RS Components is a catalogue-based distributor of Electronic, Electrical, Electromechanical and Industrial Components. Founded in 1937, RS is part of holding company Electrocomponents plc, a global business supporting over a million engineers. With operating companies based in 27 countries, including France, Germany and Italy, it has operations as far afield as Chile, Singapore, Australia and China, and distributes to over 160 countries worldwide.

Since its beginning, RS has had the simple objective of providing a part for every job, from research and development through pre-production to maintenance and repair. As those jobs have diversified and become even more complex, RS has developed its offering and services accordingly.

New technology also plays an important part. When RS launched http://rswww.com, it was the first UK plc in its marketplace with a fully integrated transactional web site. Operating in every market, its eCommerce capabilities have seen 35% of sales achieved over the internet.

Based in Corby, Northamptonshire, RS employs over 2,500 employees nationwide. Recent awards achieved include Regional Winner at the East Midlands National Training Awards 2008 and a winner at the Customer Service Awards 2008.