DSGi has closed Equanet sales offices in Hemel Hempstead and Sheffield as part of programme to cut costs by a further £20m this financial year with a dozen roles put at risk of redundancy.
The Sheffield branch was set up in June 2006 and the operation in Hemel came online four months later and while they took some time to get off the ground, sales were believed to have built steadily in the last couple of years.
A DSGi spokesman confirmed the closure of the two satellite sales offices which he claimed were set up as trials.
"A dozen roles are at risk and we are working with those concerned to identify other opportunities within DSGi and DSGi Business," he said.
The Hemel office had been passed to the operation in Borehamwood, while it is believed that those in Sheffield will be managed by the PC World Business sales team in Bury, said sources familiar with the situation
It is understood that the staff were handed a month's pay and are now on gardening leave as the situation is concluded.
A week ago, DSGi issued a trading update to the City which showed a 10% decline in sales during the Christmas quarter, and revealed plans to slash a further £20m in costs this fiscal year, on top of the £95m it already squeezed out of the business.