Softline, which specializes in the supply of IT solutions, has reduced the salaries of employees of its division in Russia by 25%, the Forbes resource reported, citing a presentation for staff presented on May 16. This 25% becomes a “surcharge” that will be paid if the employee meets the margin plan. According to Forbes sources, the margin plan is up 20% year-over-year. If the work of the employee is not related to sales, then this reduction is not compensated in any way. This change will be in effect throughout 2022. But we will immediately cancel it as soon as the situation on the market and the results of the company change for the better, ” the presentation says.

According to sources, Softline’s revenue fell by 30% in April. At the same time, Softline finished the previous financial year, which ended on March 31, with excellent results . Gross profit in constant currency increased by 39% year-on-year to $306.2 million, services segment turnover increased by 85.3% to $144.0 million. March 2022. The number of employees working in the service segment more than doubled to 4,024.

Source: Softline

The company was founded in 1993 in Moscow by Igor Borovikov, who is currently a tax resident in Portugal. Softline is headquartered in London (UK). The company itself is registered in Cyprus (Softline Holding PLC) and does not consider itself a legal entity owned or acting on behalf of a Russian person, which was announced in March of this year.

Softline operates in more than 60 countries around the world, including Turkey, Latin America and India. In Russia, the lion’s share of Softline’s income depended on the supply of Microsoft products (according to the source – about 45% of income), thanks to which it occupied 43% in the domestic market of solution providers of the American company. About 30% was brought to the company by sales of solutions from other Western vendors, 15% – by domestic solutions (Kaspersky Lab, Security Code, etc.), and 10% of revenue was brought by services.

Image Source: Softline

In connection with the events in Ukraine, Microsoft suspended the sale of products and services in Russia in early March, which hit Softline’s revenues hard. This also affected the cloud business – according to iKS-Consulting, at the end of March last year, this direction accounted for $364 million (26.79 billion rubles at the average annual rate). As for technology, most of the company’s revenue was brought by solutions from vendors HP, Cisco and Lenovo.

Almost half of the total turnover in 2021 (49%) came from regions outside of Russia. Growth was particularly strong in Europe, the Middle East and Africa, and Asia Pacific, both organically and through recent acquisitions. The company noted that despite the increased uncertainty, turnover growth in Russia in the fourth quarter of the last financial year amounted to 11.9% compared to the same period of the previous year.

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