In conjunction with Compaq's worldwide downsizing, the Australian arm of the computer giant has shut eight out of its nine Compaq Connect Stores across the country, taking down 48 employees with it.
Group Compaq Connect Manager Keith Perkin told ZDNet Australia, Compaq made the decision to discontinue the rolling out of franchise stores across Australia due to the current economic climate.
In November 2000, Compaq closed six Connect stores and a further two have been shut down just recently. One store in Sydney, however, is no longer a franchise and is run independently of the computer company.
A total of 48 employees were lost in the closures.
According to Perkin, Compaq was testing the concept of a network of franchise stores around the country before pulling back to its core business.
"The IT industry is reviewing all programs and pulling back to its basic resources," Perkins said.
The closures have followed Compaq's global announcement on March 16 regarding the restructuring of its core business areas, in which 5000 employees were retrenched worldwide.
According to Perkin, only 12 positions were cut in Australia.
