Infobank retrenches – again
What's left to trim?
Infobank, the UK company soon to be known as Izodia, is cutting costs again.
The e-commerce software maker is shrinking Nordic activities to reselling its core InTrade product. Absalution will no longer be sold, but functionality will be incorporated into Intrade, the company said in a statement made at the Annual General Meeting (AGM) today. Two offices in the Nordic region are to be shut, resulting in the losses of an unspecified number of jobs.
The cuts follow an early round at the beginning of the year which saw "the re-alignment of South Africa, the absorption of the Proactive Solutions consultancy and the closure of the EPL integration services business in the United States".
The company says its three key issues are "cost reduction, product development and sales".
The spending cuts and cumulative headcount reduction of 40 per cent will reduce the loss-making company's cash burn by £15m a year. This will align expenses much more closely with anticipated revenues.
On the product development side, Infobank is trumpeting a favourable report on InTrade from the Butler Group, a UK analyst firm. This upgrade was released in January and is with several customers for development.
The company also announced two new customers were won this week (but not their names). The combined value of the deals is £1 million-plus. ®