According to sources, Chinese mobile brand TCL is set to retrench staff, with the business going to be primarily run out of China.
According to one source, who has already been notified of cuts to key staff at the Sydney-based business, those set to be let go with compensation packages yet to announced will be sacked this Friday.
According to insiders, the business has been struggling since Chinese management, which included several former Huawei mobile executives, took over the running of the Sydney-based business two years ago.
They have also had to face a surging Motorola.
ChannelNews understands that TCL Mobile have struggled to get at carriers and retailers, similar to what they had in the past, and when they have, retailers have struggled to sell through the Chinese Company’s products.
According to sources, TCL is going to try to run the business from China with a “skeleton” staff.
They are also set to try to expand their online sales operation in Australia.
Prior to the exit of Sam Skontos and several of his management team, the former CEO of the TCL-run business was record sales for the then TCL brand Alcatel.
Skontos operated as a distributor of TCL-manufactured mobile phones, and in the last year under his management, analysts had Alcatel as the number-three volume brand in Australia, with both carriers and retailers ranging the brand that was manufactured by TCL, who held a license for the French brand.
According to former staff, Skontos warned TCL executives in China, who became obsessed with the notion of replacing the Alcatel-branded products with TCL products, that the concept would not work.
TCL China management did not like the idea of paying a license fee to Alcatel, resulting in the switch to TCL-branded products.
According to carriers, this did not sit well with them, resulting in two major brands switching to new prepaid suppliers.
China-based management also cut back on marketing as a result of poor sales. Questions have also been raised about their investment in soccer and the Optus Sport channel, which is not seen as a mainstream generator of traffic.
Globally, TCL invested in soccer, which did little to improve sales in Australia.
Among the global soccer ambassadors for TCL was Rodrygo, a winger for Brazil’s national team, England midfield player Phil Foden, and little-known Spanish international Pedri, as well as Raphaël Varane who also played for France.
Currently, Harvey Norman, who are struggling to grow their mobile business, are ranging TCL mobile phones. Also ranging TCL models are JB Hi-Fi.
