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.