Verrex is to close all its non-US offices and concentrate on its domestic market, Installation has learned.
Existing projects within EMEA and Asia will be transferred to a network of global partners. “We’re moving 100% to a global partner model, which we are finalising at the moment,” said Theresa Hahn, director of marketing and business development at the integrator.
In addition to the closure of its UK operation reported earlier, Verrex will also be closing its offices in Hong Kong and elsewhere as part of the same restructuring process. Ultimately only New York, Houston and Boston will remain as physical locations.
Verrex currently uses partners on some projects; this network is being rationalised, with jobs being concentrated among a smaller group of providers. An announcement on this will be made in less than two weeks, said Hahn. The model for each project will not change: a Verrex project manager or lead technician will work with partner staff.
Hahn was keen to stress that Verrex’ on-site offering in EMEA and Asia-Pacific, in which Verrex staff are deployed full-time on customer sites, will not be affected: the relevant staff will become employed by Verrex in the US. These arrangements are in place in London, Singapore, Shanghai, Sydney and Tokyo.
She also confirmed that staff from the UK headquarters in Hertford, “mostly the sales team”, were laid off on Friday. This includes recently appointed sales director Jon Foot. Managing director James Shanks will stay in place until the Hertford office closes; this will be when ongoing jobs are completed, and is expected to be before the end of the year. The London sales office will close at the end of August when its lease expires.
Hahn explained that the decision had been taken because the company was being financially stretched in too many directions: “We’ve been growing internationally but not domestically.” With a new focus on domestic growth, and in the face of “economic headwinds in Europe”, the decision was taken to concentrate the company’s physical presence in its domestic market.