Queensland IT company Cellnet Group Ltd said it will close its Perth, Melbourne and Adelaide product distribution warehouses in a bid to focus on computer server work provided by IBM and Microsoft.
The closure of the warehouses comes as the company reduces its IT products distribution operations in Australia and New Zealand as part of a restructure in the current economic climate.
Its telecommunications and retail warehouse in Brisbane will remain operational.
Chairman Sandy Beard said the restructure comes after a strategic review of the returns received from desktop and laptop product distribution "in light of current and forseeable market conditions".
"It is clear that the capital employed in this segment of the business is unlikely to provide an adequate, if any, return to our shareholders," Mr Beard said.
"The server segment of the market and the mutually strategic relationship enjoyed with, amongst others, IBM is profitable and continues to enjoy greater market penetration."
Cellnet's telecommunication products and retail segment continues to perform well and remains a focus, he said.
The restructure will have a one-off cost of $2.5 million, and will include "some redundancies", the company said.
Revenue is expected to decrease by $95 million per annum, but reduced overheads will see bottom line improve, Cellnet advised.
Calls to Cellnet were not returned at time of publishing.