Possible Canada-neteller Implications

[LITTLEPOPPA 0]

NETeller Processes PinkslipsIn what appears to be a move to bail out of Canada, British online payment processor NETeller said it would shed 250 Canadian jobs, following its withdrawal from the U.S. market. Also on the chopping block, NETeller said it would review the group's dwindling property requirements and possibly sell or partially lease some of its Calgary-based facilities."Staff reductions will total around 220 employees across all levels, from the group's contact center and security teams as well as related support functions in marketing, processing and IT," NETeller said on Friday of its Calgary-based operations.The company is also cutting 30 jobs in Britain.Chief Executive Ron Martin explained the belt tightening: "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." NETeller is cooperating with an investigation by the Attorney's Office for the Southern District of New York. Founders Stephen Lawrence and John Lefebvre no longer work for the firm but still have significant shareholdings. Meanwhile, thousands of NETEller customers are still unable to access funds worth up to $55 million, and a company spokesman could not say when the cash would be returned."Its (the company's) hands are tied by the Department of Justice ... This is a probe into the two founders of the business, so it is not in any way affecting NETeller Plc," the spokesman said.However, it does appear this action is affecting NETeller Plc. Thousands of frustrated customers who have funds frozen in limbo, employees receiving pink slips today, and NETeller said its shares would continue to be suspended from trading on AIM in view of the continuing uncertainty.NETeller also reiterated that total cash costs associated with staff restructuring were expected to be around $1.1 million in 2006 and a further $3.7 million in 2007.

[Logun 0]

the company just lost 65% of it's market - uuuhhh yah they are going to cut jobs.I would not expect them to just stop everything though. They still have 200million in the bank and will sstill post a profit of about 20-30 million in 2007

[mclark340 0]

They should convert their properties to PO BOX locations for US gamblers to use to set up their new Neteller location.