Arrow Electronics Initiates Multiyear Restructuring, Including Some Job Cuts

Distributor Arrow Electronics has launched a multiyear restructuring plan, including some job cuts, that aims to improve operational efficiency.

Arrow Electronics announced the plan along with its third-quarter 2024 earnings. During the quarter, the distribution giant's sales decreased 15% year over year. Its revenue fell almost 15%, to $6.82 billion. That's down from $8 billion for the year-ago quarter. Earnings totaled slightly more than $100 million, compared to nearly $199 million the year prior.

“With Arrow’s ongoing efforts to simplify our operations, we are restructuring the business to drive additional cost savings,” said John Hourigan, Arrow Electronics’ vice president of public affairs and corporate marketing. "In line with that, we are executing a multiyear plan to further reduce our annual operating expenses. Primarily related to reorganizing and consolidating certain areas of the company’s operations, these efforts will focus on geographic realignment and consolidation of resources. This is more of a rebalance/realignment as a primary focus of this plan involves relocating roles around the world. However, the net impact on the total employee base will not be dramatically different.”

Arrow's John Hourigan

What Arrow Electronics Plans to Do

The distributor's restructuring plan includes:

Related:Password Protector LastPass Available Through TD Synnex

Under the plan, Arrow Electronics expects to incur pre-tax restructuring charges of about $185 million, consisting of about $110 million in employee severance and other personnel cash expenditures, about $50 million in non-cash asset impairments, accelerated depreciation and inventory write-downs related to the wind down of certain business operations, and about $25 million other related cash expenditures.

The distributor plans to substantially complete its plan by the end of its fiscal year 2026, or Dec. 31, 2026.

Exertis Initiates Strategic Shift

Also on Thursday, distributor Exertis unveiled a strategic shift to become a more dedicated, specialist distributor.

Exertis said the move will allow it to leverage its expertise in high-growth sectors, offering more tailored solutions to better support customers’ businesses. The dedicated business and consumer divisions, with integrated sales and commercial teams, will result in a streamlined approach that simplifies operations.

Related:Channel Futures' Top Distribution Leaders for 2024

In Exertis’ business division, the focus is on high-growth areas such as audio-visual (AV), components, IT solutions, mobile and print. In the consumer division, the distributor will make targeted improvements to further elevate its service.

Exertis' Tim Griffin

“These changes are designed to make us more agile and responsive to the market, while fully leveraging our specialist knowledge and optimized services,” said Tim Griffin, CEO of Exertis IT. “The integration of sales and commercial functions ensures a simpler, more efficient customer experience. Our fully integrated channels provide unified support tailored to our customers’ specific needs.”

Jonathan Sutherland is now managing director of Exertis Consumer, Jamie Brothwell has been named managing director of Exertis Business, Paul Jacobs becomes trading director, and Lisa Bird takes on the role of sales operations and third-party logistics director.