Volante cuts 70 jobs in 2006 so far

Stan Beer
Monday, 13 February 2006 02:34

IT Industry - Listed Tech

In an internal memo to staff, Volante (ASX:VGL) CEO Ian Penman has stated that the company has cut almost 70 jobs in 2006 to date.

A source close to Volante told iTWire last week that the recent memo from Mr Penman stated that 68 staff had gone from the company since the beginning of the year. However, the source said that a few more staff had gone since the memo had been sent. Mr Penman has recently stated that a suggested staff turnover figure of 570 in the past 12 months was wildly exaggerated. However, he has refused to make public details of the actual staff attrition rate at the company.

Meanwhile, the battle between Volante and would-be acquirer telecommunications provider Commander continues to rage. According to a Volante source, there have emails to Volante staff from an outsider, soliciting information in relation to the bid. The source says that the South Australian Government services contract win, announced in the past two weeks by Volante has now started to wear a bit thin as the market digests the meaning of it. "The reality is that Volante is not going to see any money from that deal until at least 2007," the source said.

Volante shares closed on Friday at $1.09c, Commander wants the company for $1.01c a share.