Starnet Communications International Inc. (OTC-BB: SNMM), a leading provider of Internet gambling software, has announced a workforce reduction of approximately 30 employees at its Vancouver, B.C. based Inphinity Interactive subsidiary. The move was made to reduce expenditure levels and increase operating efficiencies.
Starnet said the reductions "are part of Starnet's focus on aggressively pursuing opportunities to improve cash flow from operations without jeopardizing future revenue growth." The total salary and benefits associated with the departed employees is in the range of $1 to 1.2 Million dollars (US).
As part of the reductions, Jason King, previously Inphinity's Chief Executive Officer, has left the company. The reductions are effective immediately and are primarily in the managerial, administrative and support areas. Inphinity's core development team remains intact.
"We have taken these measures in order to make Starnet and its subsidiaries a leaner, more client-focussed business group," said Interim President and Chief Executive Officer Fred Hazell. "We are transforming our corporate culture from a software development focus to one devoted to business development and an improved bottom line."
Starnet anticipates taking further measures to reduce overall company-wide expenditures in the weeks ahead.