Micro Warehouse Gov/Ed lays off 11

Despite 75 layoffs at its Norwalk, Conn.-based parent, government information technology reseller Micro Warehouse Gov/Ed Inc. will be affected minimally, according to Scott Lewis, vice president marketing and partner development for the government unit.

The government subsidiary cut 11 people, Lewis said.

Six were sales people, the rest were administrative and product management staff whose duties were assumed by the Norwalk corporate office. The Gov/Ed cuts were not due to the overall corporate restructuring, Lewis said, but were rather a result of the subsidiary's own drive towards greater efficiency.

The Ashburn, Va.-based Gov/Ed office employs 319 people. Most of them were hired since the beginning of the year, Lewis said.

Lewis said Micro Warehouse overall cut approximately 3 percent of its work force of 2,700 people because of restructuring. A source told Washington Technology that Micro Warehouse Chief Executive Officer Jerome York recently sent an internal memo asking that a number of unfilled positions remain empty.

Micro Warehouse Inc. reported $2 billion in revenue for 2002, according to Hoover's Online of Austin, Texas.

Like many resellers, Micro Warehouse is looking to its government business to boost sales in the flat economy. According to the subsidiary, Micro Warehouse Gov/Ed sales revenue grew 23 percent from June 2002 to June 2003, while education sales revenue grew by 27 percent in the first quarter of 2003. Actual revenue figures were not disclosed.

Lewis said the company is strongest in the education market but has a goal to make federal sales 50 percent of the subsidiary's revenue.

Micro Warehouse Gov/Ed Inc. was launched October 2002.

(Updated 8:27 a.m. July 16, 2003)