CDW to cut 190 in company's first lay...

CDW to cut 190 in company's first layoffs

There are 58 comments on the Chicago Tribune story from Jan 15, 2009, titled CDW to cut 190 in company's first layoffs. In it, Chicago Tribune reports that:

Technology vendor CDW Corp. has laid off workers for the first time in the company's history, letting go of about 190 employees at its Vernon Hills offices.

Join the discussion below, or Read more at Chicago Tribune.

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Polonious

Lake Forest, IL

#1 Jan 15, 2009
Could this have something to do with CDW having been bought out in late 2007 by Chicago private equity firm Madison Dearborn Partners?
jake

Chicago, IL

#2 Jan 15, 2009
i doubt it. that doesn't even make sense. in case you havent noticed....THE ECONOMY SUCKS!!!!
Rob in Chicago

Concord, CA

#3 Jan 15, 2009
Maybe, Genius.
Mike Dell

Glenview, IL

#4 Jan 15, 2009
190 ain't nothing! There's plenty more coming! Good bye Cdub! see you in India!
Dave

Chicago, IL

#5 Jan 15, 2009
Another 10%+ in round # two. On the way next month.
Just Askin

Winnetka, IL

#6 Jan 15, 2009
Here we go again. Yeah, 190 is relatively nothing, but the more people that are put out of work the worse everything is going to get. Companies AND their investors need to bite the bullet and keep people employed.
Ernie

Waukegan, IL

#7 Jan 15, 2009
Well i work at cdw and yea its slow but is hard having to see people you work with even friends lose there job..hope things pick up soon...
Equity Firms Suck

Villa Park, IL

#8 Jan 15, 2009
NOW, NOW....CDW employed stringent cost cutting measures such as nixing cream and sugar for coffee (but not coffee.....so you better hope that the next VIP coming into CDW drinks it black). Oh yeah, and instituting a $.05 charge on employees for a pat of butter in the employee cafeteria for potatoes. Stringent measures so when it came time to send those 190 employees to the bread line, their severance letter mentioned that CDW tried.
Robert Salm

Chicago, IL

#9 Jan 16, 2009
Bad news. CDW is a good company, and we used them in the past for some of our computer needs.
Ted

Austin, TX

#10 Jan 16, 2009
I use SHI instead
Chad

Round Rock, TX

#11 Jan 16, 2009
CDW used to be a VAR. Over the last 5 years they have become a bunch of call centers with uneducated people acting like IT pros. CDW's lack of value is the main reason for their faliure.
PS - Speaking to high level, local (Chicagoland) business people involved with CDW this is just the first round.
dubsbadmanagemen t

Gurnee, IL

#12 Jan 16, 2009
As a former employee of CDW I saw this coming in the Summer of 2007 before the economic meltdown.CDW employees know that senior management greed, (the buyout in 2007 netted CEO John Edwardson 110 million plus for his stock options) lack of vision, management arrogance from middle to senior levels and their exceptionally high turnover rate of Account Managers have as much to do with this as the economy. CDW has been screwing over longtime successful sales account managers in many ways, by taking away accounts, upsetting longtime customers in the process,and and reducing commissions to such a level that their payment structure is a joke. Chad from Texas is right, it has become nothing more than a call center where sales staff are forced to meet the phone call numbers no matter what, to the point where CDW is harassing customers. It will be interesting to see what becomes of this company once the economy turns around. Many account managers that left and went to work for CDW competitors took their accounts with them, and it doesn't help that CDW has gained a reputation as an overpriced bait and switch vendor. I am sad for my former co-workers, and the longer John Edwardson is at the helm, I see nothing but dark days ahead for this company.According to the Glassdoor website his approval rating is 35% and overall employee rating is just as bad.
MANWITHAPLAN

Waukegan, IL

#13 Jan 16, 2009
Well 190 isnt that many people considering the company has well over 3 thousand, but if you were part of that 190 it would be something. Cmon people have a heart! Times are hard and they are getting harder.
MANWITHAPLAN

Waukegan, IL

#14 Jan 16, 2009
I think renewal specialist are HOT! Except for the guys...I don't sway that way :)
dave

Grayslake, IL

#15 Jan 16, 2009
CDW went from being a cash-heavy, debt-free public company to a private firm saddled with massive debt.

but would layoffs still have happened had they not gone private? who knows...

Since: Jan 09

Gurnee, IL

#16 Jan 17, 2009
MANWITHAPLAN wrote:
Well 190 isnt that many people considering the company has well over 3 thousand, but if you were part of that 190 it would be something. Cmon people have a heart! Times are hard and they are getting harder.
Actually, CDW has nearly 7,000 employees including those from the recent merger with Berbee. This represents under 3%.

Since: Jan 09

Gurnee, IL

#17 Jan 17, 2009
dubsbadmanagement wrote:
As a former employee of CDW I saw this coming in the Summer of 2007 before the economic meltdown.CDW employees know that senior management greed,(the buyout in 2007 netted CEO John Edwardson 110 million plus for his stock options) lack of vision, management arrogance from middle to senior levels and their exceptionally high turnover rate of Account Managers have as much to do with this as the economy. CDW has been screwing over longtime successful sales account managers in many ways, by taking away accounts, upsetting longtime customers in the process,and and reducing commissions to such a level that their payment structure is a joke. Chad from Texas is right, it has become nothing more than a call center where sales staff are forced to meet the phone call numbers no matter what, to the point where CDW is harassing customers. It will be interesting to see what becomes of this company once the economy turns around. Many account managers that left and went to work for CDW competitors took their accounts with them, and it doesn't help that CDW has gained a reputation as an overpriced bait and switch vendor. I am sad for my former co-workers, and the longer John Edwardson is at the helm, I see nothing but dark days ahead for this company.According to the Glassdoor website his approval rating is 35% and overall employee rating is just as bad.
And Michael Krazny netted billions. A large chunk of which payed big bonuses to employees right down to the warehouse workers. With more to come when MDP takes it public again.
Johnny

Chicago, IL

#18 Jan 17, 2009
It's sad that no execs offered to take a small reduction in pay to help offset the layoffs of people who really need their jobs. Or maybe they should have let the some of the execs go instead. There is way too much management at CDW now. John's 33% pay cut for 2009 is a slap in the face to those that were laid off. He made 112 million in the buy out...plus his regular pay. He should be working for $1 until the company hits 10 billion in sales like he said would happen in 2008.
FormerEmployee

Northbrook, IL

#19 Jan 17, 2009
I worked at CDW for nearly 9 years (left in Oct 2007) - CDW used to be a great place to work and was built on the entreprenerial innovations of the employees and strong relationships with customers - the problems all started when they kept on layering and layering management, all these people did was think of ideas, and justified them based on 'speculative' figures. The company went from customer cenetered and innovative to 'just like everyone else'. Customers that became accustomed to a high level of service with people they had a solid relationship with were disappointed when the company had this 'brilliant' idea that employees AND customers protested, where customers were shifted around to newer, less experienced people (and less paid, of course). This is only one of the many 'ideas' that caused the company to erode, and its probably only going to get worse.
Mike

Glenview, IL

#20 Jan 17, 2009
As a former CDW employee, long time local resident of Lake County, IL.(CDW's home town and headquarters) and friend of numerous current and former CDW employees these layoffs don't surprise me one bit. And yeah, more layoffs are on the way.
Most of the management is average at best. The reason for poor management is that promotions seem to happen primarily because of time on the job and not actual ability. My specific sales team had a supervisor who was never in sales! That individual came from ten years in CDW customer service.
Other CDW negatives include the lack of knowledgeable employees regarding IT, poor marketing/advertising and pricing that is ridiculous.
The bottom line is this; Michael Krasny created CDW at a time when the vast majority of people were technologically illiterate. They were happy to pay high prices because product was recommended by actual employees who knew what they were talking about and the product was in stock. The market has changed and CDW has failed to adapt to it. Your average homeowners understand what a network is because many homes have a few computers. They require the same products business do, just on a smaller scale. From Dell to NewEgg the competition gets it. It's all about price and quality service now. The two key necessities CDW has been lacking since they have become a telemarketing institution.
Massive changes (capable management, effective advertising, knowledgeable sales reps or enough specialists to support) need to happen quickly or CDW will go the way of Circuit City...

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