reisert@ricks.enet.dec.com (Jim Reisert) (11/15/90)
Northgate Computer Systems - Lays off direct-sales staff, employees say
{The Wall Street Journal, 13-Nov-90, p. A12}
Northgate, a fast-growing maker of IBM-compatible PCs, has run into
financing problems and had to lay off its direct sales force, employees say.
About six months ago, Northgate began expanding its staff nearly 10% by hiring
about 65 people to sell directly to large corporations from offices all around
the country. This appears to have been more than the company's thin profit
margins could support, so Northgate told the newly hired direct marketers last
week that they were laid off. "They [Northgate] overextended themselves," said
Joe Schulte, the VP who ran the outbound sales operation and who is among
those laid off. "We were just starting to see some excellent results, but
they're retrenching. They're going back to being basically a telemarketer."
The company, which didn't announce the layoffs, said officials couldn't be
reached for comment.
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