Dimension Data confirmed that it has engaged in a Section 189 consultation process which will result in the retrenchment of approximately 480 employees.
“Dimension Data can confirm that it has started the process of consulting with stakeholders and employees, with a view to implementing a new operating model aligned with announcements in March this year,” the company said.
“Through a Section 189 process we anticipate that approximately 480 employees may leave the business.”
“We are committed to an open and transparent process and employees will be provided the necessary support.”
These retrenchments form part of the process to consolidate the four brands of Dimension Data, Internet Solutions, Britehouse, and ContinuitySA into a single operating entity under the Dimension Data name.
“The main reason for this change is to provide a single portfolio of services to clients and improve client experience, as well as to streamline operations and future fit the Dimension Data business,” Dimension Data said.
“As a result, our workforce requirements have changed. We intend to remove role duplication, and consolidate platforms, tools and processes into single instances, and flatten our structure.”
Dimension Data said that while reducing costs is not the primary objective of its new model, the effects of COVID-19 on the business has made these changes necessary.
Responding to market requirements
Dimension Data CEO Grant Bodley previously said the new operating model was necessary to respond to market requirements.
He said all the brands which will fall away were wholly-owned by Dimension Data, and what they offer the market will stay intact.
“Our clients have always said to us they know these are 100% Dimension Data-owned companies and it is confusing at times to understand how they are all cobbled together,” said Bodley.
Their clients said they want to buy products and services from Dimension Data and not multiple companies, he said.
Bodley acknowledged that there would be job cuts after the other brands were amalgamated with Dimension Data.
The company’s outlook has changed since this statement, however, as he previously said these job cuts would not exceed 300.
“There is absolutely not a number. We are not looking to reduce the headcount by 5%, 10%, or 20%,” Bodley said recently.
“We will go through the process and if we see any duplication or excess staff in the organisation, we will make the hard calls which are required.”