The mobile phone distributor, Brightpoint, is to take cost-cutting measures across its global operations over fears of a slowdown in handset sales.
The company said it now expects the global handset market to reach 1.25-1.30 billion units this year, down from a previous estimate of 1.25-1.35 billion.
Second-quarter sell-in units are expected to be “flat to slightly up” compared to the first three months of the year.
This contrasts with a previous forecast for 3-5 per cent growth by the distributor.
The cost-cutting will come mainly in Europe, at the former Dangaard operations.
Brightpoint is cutting 50-75 jobs at its European head office in Denmark, and eliminating another 225-250 positions across its other European operations.
This is expected to result in annual cost savings of US$25-30 million.
Brightpoint is implementing other cost reduction initiatives in its Americas and Asia Pacific divisions as well as within its corporate and global information technology organisations.
The company has simultaneously begun the evaluation and design phases of a European shared service facility and warehouse consolidation and automation projects.
These measures are expected to contribute “significant additional cost synergies” as they are implemented over the next 6-24 months.
Brightpoint also announced the resignation of Dangaard founder Steen Pedersen, currently president of Brightpoint Europe, from 19 November.
Michael Koehn Milland, currently co-COO and president of international operations at Brightpoint, will take the new role of president for Europe, the Middle East and Africa.
Milland will be responsible for global business development with the objective of increasing Brightpoint’s market share worldwide.
Mark Howell, the other co-COO, will take up the position of president Americas and also oversee all global logistics operations.