Systems integrator Damovo, spun out of Ericsson Enterprise's direct sales arm, has laid off some staff and asked others to reapply for jobs. UK managing director David McKeigue has resigned.
A Damovo spokesperson said that the restructuring was due to the company's transition from a product-focused supplier for Ericsson Enterprise to a systems integrator.
But a source familiar with the company said the changes are related to poor performance. "The company is £11m down on [targets for] its last two quarters," he said.
Formerly known as Ericsson Enterprise Limited, Damovo is 80 per cent owned by investment group Apax Partners, with Ericsson Enterprise holding the remaining share. McKeigue had been hired to lead the new firm.
"Damovo brought Dave McKeigue on as a GP when in reality [it] needs a surgeon because of the climate under which it launched," said Manny Pinon, sales and marketing director at distributor Norwood Adam.
Kirstie Young, head of human resources at Damovo UK, said the changes meant that the jobs of some staff had become less relevant. "A handful of [people] have been made redundant and have the opportunity to reapply for their jobs.
"Only thirteen people have been made redundant since January and about 20 in total may have to reapply for their jobs."
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