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Net malaise blamed for iomart lay-offs

Up to 50 staff going

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iomart, the Scottish broadband provider, is to make up to 50 people redundant, it announced today. The company says it has "launched a consultation process with staff to restructure the organisation".

iomart recently sold its Madasafish consumer ISP business, attacking the mad economics of some of its rivals. It decided to concentrated on providing broadband ADSL, as a reseller of BT services.

But today it says: "Like every other technology business iomart has been impacted by the general business malaise around the internet...The adoption of broadband ADSL services in the UK is also well behind the rest of the developed world and many companies are delaying spending on infrastructure and services."

CEO Angus MacSween said: "We need a slimmer, fitter organisation as we turn our focus to the business market place. Like every other management team
we must ensure we are correctly sized for the prevailing business activity. Many of our target audience are themselves too busy downsizing
to be doing 'business as usual'. iomart intends to come out of this stronger and more able to take advantage of opportunities as the fall out
in the sector continues." ®

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