“(Thursday), Systemax announced the phased shutdown of our PC manufacturing facility in Fletcher, OH, which will impact approximately 120 employees,” the company said in a statement. “This was a difficult decision but necessary given competitive and cost pressures. We will continue to maintain a sales office, which has approximately 80 employees.”
The announcement of the company’s exit from the computer manufacturing business was made as part of its third quarter financial results release. Company leaders indicated decreasing demand led to the decision.
“On the consumer front, the environment remains challenging,” said Richard Leeds, Systemax chairman and CEO, on a conference call announcing the third quarter results. “Demand for consumer electronics and PCs remains tepid across the industry.”
Systemax said it expects costs of ending the manufacturing business to total between $6 million and $8 million in 2012 and 2013.