NETeller plans 250 layoffs

16 February 2007

NETeller plans to layoff more than 250 employees worldwide as part of a reorganization following its recent withdrawal from the U.S. marketplace, according to a press release issued Friday.

The layoffs will hit NETeller's Calgary offices hardest. This location, which was primarily used to support U.S. customers, is expected to lose about 220 workers.

"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," Group President and CEO Ron Martin said. "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 remaining layoffs will occur in the Gatwick, England offices. NETeller officials said they plan remove this office and relocate employees there to share space with NETeller's NetBanx employees in Cambridge.

NETeller retains 425 people after the reductions in their Canadian and United Kingdom offices. NETeller employed more than 1,000 workers at its 2006 peak.

The cost associated with reconfiguring staffing will be $1.1 million in 2006 and $3.7 million in 2007, according to the press release.