Brightpoint to Cut Ten Percent of its Workforce

Handset distributor, Brightpoint has announced a reshuffling of its European operations and plans to cur between 275 to 325 jobs - around 10% of its total workforce. The Company also announced a reorganization of its global executive team. As part of the natural progression of integrating its purchase of Dangaard, the company expects that it will cut some 50 to 75 positions at Brightpoint's current European division headquarters in Denmark by the end of 2008.

Last February, Brightpoint announced the acquisition of  Dangaard Telecom. The combined company had a 2006 estimated pro forma revenues of $4.6 billion and operating income of $106 million. The combined entity will have more than 3,100 employees and over 25,000 customers in 25 countries and in 2006 would have jointly shipped over 64 million mobile phones.

In addition to the foregoing changes currently in process within its European division headquarters, Brightpoint will implement a plan to eliminate 225 to 250 positions from its European division's operating entities by the end of 2008.

The foregoing headcount reductions will be coupled with other significant cost reduction initiatives in Brightpoint's European operating entities. The Company expects the combined initiatives, when implemented, to result in approximately $25 million to $30 million in annualized spending reductions.

Brightpoint is implementing other cost reduction initiatives in its Americas and Asia Pacific divisions as well as within its corporate and global information technology organizations. The Company has simultaneously begun the evaluation and design phases of a European shared service facility and warehouse consolidation and automation projects. The Company expects that these global opportunities will contribute significant additional cost synergies as they are implemented over the next 6 to 24 months.

Wireless Handset Industry Update and Outlook

With respect to the overall global wireless industry, the Company currently believes that the second quarter global wireless unit sell-in will be relatively flat to slightly up sequentially, as compared to its previous estimate of a 3% to 5% sequential increase. In its current view, the second quarter sell-in number will be in the range of 295 million to 300 million wireless units. The Company also currently believes that, for the full year 2008, global unit sell-in will be in the range of 1.25 billion to 1.30 billion units, versus its previous estimate of 1.25 billion to 1.35 billion units.

Reorganization of Global Executive Team

As part of Brightpoint's global executive team reorganization, Steen F. Pedersen is to step down as Brightpoint's President of Europe with effect from this November.

Michael Koehn Milland, who is currently serving as the Company's Co-Chief Operating Officer and President, International Operations, will instead assume the role of, and have his title changed to, President, Europe, Middle East and Africa. The President of Europe position, previously held by Mr. Pedersen, will be eliminated. Additionally, Mr. Milland will be responsible for global business development with the objective of increasing Brightpoint's market share worldwide.

"I have mixed emotions about this transition," stated Steen Pedersen, "as I spent so many years with Dangaard, but I know that this is the proper decision for me and for the future growth of Brightpoint. Brightpoint Europe will now be in the capable hands of my colleague Michael Koehn Milland."

Posted to the site on 30th June 2008