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BrightPoint making local employment cutbacks

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BrightPoint Inc. has laid off an undisclosed number of its local employees and decided not to fill another 120 open positions, the company acknowledged Thursday.

The Indianapolis-based provider of logistics for wireless devices said the staff reductions were not prompted by the recent loss of major client Cricket Communications Inc.

“It was actually an undertaking that was already underway,” BrightPoint spokeswoman Carolyn Manco said.

Manco declined to disclose the actual number of employee cuts because she said the number might change as the company continues to evaluate its costs. “It's premature for us to give a number,” she said. She did say fewer than 100 people would lose their jobs.

BrightPoint reduced its 2012 earnings forecast Feb. 22, when announcing that Cricket would take its business to another mobile-services vendor. BrightPoint handled 6.8 million devices for Cricket last year out of a total 112 million for all customers. The news pushed BrightPoint's shares down 10 percent, to $8.88 each, on Feb. 22.

Shares were up 2 cents in early trading Friday, to $8.81 each.

As of Dec. 31, BrightPoint had 2,168 full-time employees and 1,733 temporary workers in North and South America, the company said in its annual report. About 1,300 of those employees work in central Indiana. Its corporate headquarters has about 130 employees.

BrightPoint reported record revenue of $5.24 billion and handled a record number of devices last year, but Manco said BrightPoint made two deals in the past 14 months—an $80 million acquisition of refurbishing firm Touchstone Wireless LP and a $15 million investment in IT distributor Intcomex Inc.—that are prompting the company to do some reorganization.

She added that BrightPoint is also concerned about the economy in Europe. “A part of it is we're bracing ourselves,” she said.
 

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  1. The east side does have potential...and I have always thought Washington Scare should become an outlet mall. Anyone remember how popular Eastgate was? Well, Indy has no outlet malls, we have to go to Edinburgh for the deep discounts and I don't understand why. Jim is right. We need a few good eastsiders interested in actually making some noise and trying to change the commerce, culture and stereotypes of the East side. Irvington is very progressive and making great strides, why can't the far east side ride on their coat tails to make some changes?

  2. Boston.com has an article from 2010 where they talk about how Interactions moved to Massachusetts in the year prior. http://www.boston.com/business/technology/innoeco/2010/07/interactions_banks_63_million.html The article includes a link back to that Inside Indiana Business press release I linked to earlier, snarkily noting, "Guess this 2006 plan to create 200-plus new jobs in Indiana didn't exactly work out."

  3. I live on the east side and I have read all your comments. a local paper just did an article on Washington square mall with just as many comments and concerns. I am not sure if they are still around, but there was an east side coalition with good intentions to do good things on the east side. And there is a facebook post that called my eastside indy with many old members of the eastside who voice concerns about the east side of the city. We need to come together and not just complain and moan, but come up with actual concrete solutions, because what Dal said is very very true- the eastside could be a goldmine in the right hands. But if anyone is going damn, and change things, it is us eastside residents

  4. Please go back re-read your economics text book and the fine print on the February 2014 CBO report. A minimum wage increase has never resulted in a net job loss...

  5. The GOP at the Statehouse is more interested in PR to keep their majority, than using it to get anything good actually done. The State continues its downward spiral.

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