Arrow ECS ANZ's parent Arrow Electronics has decided to close its global personal computer and mobility asset disposition business.
In a regulatory filing distributed yesterday, the distie said the change applies to its native US and “most other countries in which this business operates”.
CRN understands the specific business being shuttered did not arrive in Australia, and that the ANZ business still offers IT asset disposition through third parties.
Arrow vice president for global communications John Hourigan told CRN, "We continue to see sustainability as an important element of our overall business strategy."
"Aligned to that, and as in ANZ, we may engage our network of third parties to provide these and other services, based on customers’ needs and aligned with our core products and strategy."
Hourigan added that Arrow Electronics undertook a “strategic review” of the business in order to meet the changing needs of customers and resellers.
“Arrow Electronics constantly aligns our services and offerings to the ever-changing needs of customers and suppliers in this dynamic market,” Hourigan said.
“While we continue to see sustainability as an important element of our overall business strategy, the decision has been made to cease operations of the personal computer and mobility asset disposition global business.”
Hourigan said Arrow understands the change will require some of its customers to change their operations, but said ensuring a “smooth” transition for their business is a top priority for the distie.
In a press release announcing the decision, Arrow global chief executive Michael J. Long said the move will allow the company to focus on its cross-enterprise strategy to enable technologies like artificial intelligence, industrial automation, smart cities and vehicles.
Arrow expects the winding up will cost approximately US$115 million, and is due to fully complete at the end of the year. Arrow Electronics, the US parent company of Arrow ECS, also announced a US$130m cost-cutting program.
Updated 17/07/2019 9:36am: added clarifications on how Arrow ECS ANZ will be affected.