NETeller to cut 250 jobs

NETeller PLC, the online payment processor, is to cut around 250 jobs as it pulls out of the US market following the arrest and charges brought against its founders Stephen Lawrence and John Lefebvre.

NETeller confirmed that the bulk of the jobs to go will be in Calgary, Canada, with up to 220 employees thought to be affected. The further 30 jobs will be lost in London.

"Staff reductions will total around 220 employees, across all levels, from the group's contact centre and security teams, as well as related support functions in marketing, processing and IT," NETeller announced regarding its Calgary-based operations.

The US authorities have currently frozen all of NETeller’s US accounts as the investigation into the company continues, causing much anxiety amongst its US customers. Furthermore, those customers will have to wait even longer to recoup their funds after the hearing of Lawrence and Lefebvre, relating to charges of processing billions of dollars in illegal proceeds, has been delayed until March 16.

"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," said Ron Martin, Group President and CEO.

NETeller have also confirmed that they will be reviewing their property requirements and are entertaining the idea of selling or leasing part of their Calgary facilities. The restructuring of the business is expected to cost the company $1.1 million in 2006, which will rise to $3.7 million this year.

NETeller shares will also continue to be suspended from trading on the Alternative Investment Market in London “in view of the continuing uncertainty.”

Editor, - 2007-02-16 11:53:39

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