Storm Technologies has laid off at least 25 employees in July, with up to 70 staff members considered for redundancy.
Former employees claim that the layoffs were driven by the company’s precarious financial situation.
Several individuals have been critical of the way the company has handled the redundancies saying that they had been given poor information
In one case an email was sent out saying that due to the number of people involved, there would be a group consultation, and we needed to think about nominating representatives.
A document was attached, explaining the process and responsibilities of an employee representative, and how to nominate one. However, the date in the email was wrong.
Someone informed HR about the mistake, and HR sent a corrected email with the new date. This time, they copied all the individuals into the email, so everyone could see who was involved in the process.
Companies House records show the termination of operations director Mark Smith, who had been with the service provider for over 18 years.
These exits follow several years of turbulence at Storm, including sales director Trevor Nickolls and his team, who left to join Computacenter in 2021.
Meanwhile, at least one distributor, QBS Technology Group, has completely withdrawn its credit limit with Storm. Another major distributor is understood to have halved its credit with the MSP, while a third has been on hold for several months.
Despite these challenges, the service provider reported a seven per cent revenue growth to £126.4 million in its latest set of annual accounts.
