Online money processor to lay off 250 staff members.
Neteller is a money processor that services the online gambling industry has made the unfortunate announcement that due to the US government passing the Unlawful Internet Gambling Enforcement Act of 2006 in October last year, they are closing down large portions of their business. As a result, up to 250 staff positions are to be removed.
The majority of US operations took place from Neteller’s offices in Calgary, Canada and this will be the site where the majority of people will lose their jobs. Up to 220 employees will find themselves out of work after substantial decreases in transfer volumes and customer enquiries. The UK division will also suffer losses at up to thirty employees will get the chop.
The President and Chief Executive Officer of Neteller plc, Ron Martin, in a heartfelt statement said, ‘The events of the past months have led to challenging times for the group and the board has taken these measures to ensure the group has a sustainable business going forward. We would like to thank all of our employees who have contributed to the growth of the Neteller business over the past few years, and for those who have left or will be leaving the group, we wish you well for the future. The board believes Neteller continues to have a strong future ahead and presents many exciting opportunities for its employees.’
The total cash costs associated with staff restructuring are expected to be in the region of $1,100,000 in 2006 and a further $3,700,000 in 2007.