LCI set to lose 150 jobs
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• London Carriers International is making 150 people redundant, including 60 drivers, as part of a major reorganisation which includes closing the company's Croydon head office.
Two of the company's 12 depots, at Cambridge and Birmingham, will be closed and business will be merged with nearby sites at Nottingham and Sizewell. LCT will be decentralised with each site running as a profit centre instead of a cost centre", says spokesman Rick Foot. A senior management team is visiting all London Carriers' sites this week to explain the changes to staff.
LCI says the changes are necessary because of a slump in consumer sales, especially white goods and electrical goods which represent about 80% of LC1's business. The restructure is also vital, says LCI, if the company is to win more third-party contracts: "We need to realign the business if we are to put out our stall for non-Philips business." says Foot.
LCI was formerly the distribution arm of Anglo-Dutch company Philips, who sold it to Swedish group Inter Forward last June. Inter Forward declared its intention to decrease LCI's dependence on distribution for Philips, and business is now roughly 80% Philips and 20% new contracts.