Others : NETeller announces big layoffs

NETeller intends to dismiss about 250 employees from all world. The press issued that the company plans to reorganize itself as it has recently withdrawn from the United States marketplace.

The layoffs will mostly affect NETeller's offices from Calgary. Mainly used as Support Department for US customers, Calgary branch is about to lose 250 employees.

Group President and CEO Ron Martin explained the situation. The facts that occurred during the past months generated a special situation for the company. As a consequence, we took a series of decisions to make sure that the Group will continue to have a solid business.

Trough the voice of its president, NETeller thanked to everybody that helped the Group to develop during the past years. He also wishes good achievements for the ones who have left or are about to leave.

The rest of workers that will no longer work for NETeller are from the Gatwick offices in England. The Group also intends to close the Gatwick office and move the remaining employees to Cambridge where they will join NETeller Netbanx office.

As a result of the changes from the Canadian and U.K. locations there are 425 employees still working for NETeller. The 2006 peak for NETeller was reached when over 1000 people were employed.

According to the press releases, the staff reconfiguration costs were valued to $1.1 million in 2006 and $3.7 million in 2007.