Praemium has made around 10 staff redundant, including director Warren Gibson, as part of an organisational restructure, according to sources.
Gibson, who had been with Praemium since 2002, and was responsible for the overall sales management for the Australian business confirmed his retrenchment.
“I am looking for new opportunities,” Gibson said.
The redundancies, which hit areas including sales, client services and information technology, come after Praemium reported another full-year net loss on 31 August.
At the time, the loss was deemed unsatisfactory by the company’s newly-appointed chief executive, Michael Ohanessian, and sparked a company review.
Ohanessian declined to comment on the redundancy rumours.
The supplier of portfolio administration and separately managed account technology posted a net loss of $5.53 million for the 2011 financial year, compared to a $5.72 million deficit the previous year.
“The company has recorded an EBITDA (earnings before interest, taxes, depreciation and amortisation) loss of $5.1 million,” Ohanessian, who took over from Arthur Naoumidis in August, said at the time.
“Given that this is the same as the loss recorded in the previous year, it is clearly not satisfactory to either our investors or customers.
“As such, our immediate priority is to implement an organisational restructure and review of our operating expenses.
“We expect that the review will be completed and implemented prior to the end of calendar 2011 and place the company on a much stronger financial footing.”
He said the priority for Praemium was to achieve near-term profitability.
“This review will be conducted in a structured manner to ensure we do not jeopardise our core customer offering and to ensure we maintain the high operational and quality standards our customers have come to expect,” he said.
