Job cuts loom at Dimension Data unit Merchants

Admire Moyo
By Admire Moyo, ITWeb's news editor.
Johannesburg, 17 May 2019

Dimension Data's subsidiary Merchants is set to retrench employees.

This comes one year after Merchants acquired Toronto-based Millennium 1 Solutions, a company that specialises in contact centres and credit card support services.

Merchants is a South African customer management outsourcing solution provider which designs, builds and operates contact centres across the globe.

In June last year, Dimension Data announced that Millennium 1 and its 2 131 employees became part of Merchants.

A new Merchants Group holding company was then formed incorporating Merchants and Millennium.

The deal was part of Merchants' plan to push into the North American business process outsourcing (BPO) market by offering "omnichannel" customer contact solutions using seamless technology integration.

A source told ITWeb that Merchants is now retrenching employees in some "key areas" following this deal.

Responding to ITWeb via e-mail, Merchants said: "In June last year, Merchants and Dimension Data acquired Millennium 1 Solutions, one of Canada's leading customer management organisations, to form the Merchants Group of companies.

"Whilst significant work has been done to integrate the two companies already, a reorganisation programme has been initiated to optimise service delivery to our clients and maximise our ability to grow and scale the business globally. Whilst this will largely be positive, limited functions and individuals will be impacted, and a consultation process is under way for them."

The company did not disclose how many people will be impacted.

"Merchants employs over 8 000 people across three continents, more people than at any other time in its 38-year history, and during the next 12 months, our aim is to grow that number significantly, in line with our strategy. Merchants continues to perform in line with financial expectations of our shareholders, and with growth rates significantly ahead of the global norm for BPO," the company notes.