Creative Labs, who has struggled in its efforts to be a serious player in the portable music market, has finally quit Australia after handing product distribution over to distribution partners Altech Computers and Multimedia Technology and its online retail partners.
Earlier this month the Company axed 2,700 job, which was 50% of their workforce, while at the recent CES Show in Las Vegas Creative had a large stand in an attempt to attract attention for their Creative’s Zii “stemcell computing,” technology. The problem for Creative has been their lame attempt to take on the Apple iPod with its Zune MP3 player.
Early in 2007 the Company lost its former ANZ sales and marketing manager, Nick Angelucci to Logitech. The departure came as the Company was bleeding millions in losses.
According to a report filed to Singapore’s stock exchange on December 31, 2008, the company had 3,100 full time employees at the end of June 2008, which is around 47% lower than what was posted a year prior. The Company also posted a net loss of $19.7 million on the lowest revenues in five years.
Prior to that the Company had lost over $100M dollars in successive quarters.
In an announcement made earlier today the company said that they had quit Australia as a subsidary and that all the local operations were being consolidated from their Singapore Regional Head Office. Late last year the company closed down most of their European operations.
Bernard Koh, Country Manager, ANZ, Creative Labs said: “Like most businesses today, we have been monitoring and analysing the market situation closely and have taken steps in advance to streamline our sales distribution model.”
