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Brightpoint streamlines European operation

by Stuart Wilson, Monday 7 July 2008

NASDAQ-quoted wireless device distributor Brightpoint will cut between 275 and 325 operations in its European operation, as the company restructures and integrates recent purchase Dangaard into the wider organisation. Steen F. Pedersen – a Dangaard founder and current president of Europe at Brightpoint – will leave the company on November 19th 2008. Michael Koehn Milland, who will become president EMEA at Brightpoint, will replace Pedersen.

Milland is currently co-COO and president for international operations at Brightpoint. Pedersen will remain involved in certain projects for Brightpoint for up to one year after he leaves the company to maximise the benefits of the re-organisation.

"I have mixed emotions about this transition," stated Steen Pedersen, "as I spent so many years with Dangaard, but I know that this is the proper decision for me and for the future growth of Brightpoint. Brightpoint Europe will now be in the capable hands of my colleague Michael Koehn Milland."

Between 50 and 75 positions will be cut at Brightpoint’s current European headquarters in Denmark by the end of 2008. These cuts will primarily come from administrative positions in IT, HR, legal finance, commercial and marketing. Brightpoint will also implement a plan to shed between 225 and 250 positions from the European operating entities by the end of 2008.

Brightpoint expects between US$25 million to US$30 million in annualised spending reductions through the staff reduction and other initiatives designed to increase operating efficiency. Brightpoint has begun the evaluation and design phases of a European shared service facility and warehouse consolidation and automation projects.

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