JB Hi-Fi's business division has axed its in-house managed services team as it pivots towards an outsourced model.
The electronics retailer’s Commercial arm, which specialises in business-to-business (B2B) sales and services plans to stop providing end-to-end managed services from January 2024.
As a result, 30 people have been let go from the business and will exit in the next few weeks while 12 have been moved to new positions.
JB Hi-Fi told ARN that the retailer intends to develop a partner model with certified third-party service providers, which will “specialise in more complex and tailored tech solutions for businesses”.
“This move will further strengthen our value proposition for business customers by leveraging the Group retail proposition of best brands, big range and low prices as well as our store network and supply chain, and marketing capabilities,” said Andy Ellis, JB Hi-Fi Group Commercial and services director.
“We remain focused on continuing to provide all commercial customers the best service from our passionate and knowledgeable team via jbhifi.business and our dedicated team of JB business sales account managers.”
JB-Hi Fi said the change will affect a “limited small number of customers who have been notified of the changes and confirmed core value-added services”. These were previously said to include corporate, government and education customers.
The company said these will include telecommunications connectivity plans for small and medium business customers, business warranties and upgrade plans.
JB Hi-Fi added that the announcement is set to not affect other parts of the business.
Last financial year, publicly listed JB-Hi Fi Group posted revenue of $9.63 billion, a 4.3 per cent growth year-on-year while its post-tax profit grew by 3.7 per cent to $524.6 million.
Although not included in FY23’s financial report, the commercial unit was said to have “performed strongly” in 2022. At the end of last year, the company announced it had split what was then the Commercial unit and the IT Solutions division into three new brands: JB Hi-Fi Business, JB Hi-Fi Education and The Good Guys Commercial.