18 January 2018
visit www.ebaday.com

724 cuts 100 staff as m-commerce downturn bites

23 August 2002  |  3490 views  |  0 Mobile_3

Toronto-based m-commerce outfit 724 Solutions is to cut 100 staff globally as it seeks to reduce operating costs.

The loss-making company says the job cuts, to take effect during the third quarter, will result in annualised cost-savings of $16 million. The company will take a cash restructuring charge of $5-7 million as a result of this action, alongside an unrelated non-cash restructuring charge from the write down of earlier investments of approximately $7 million.

The company, which has been badly hit by a retrenchment in the market for mobile banking solutions, says the job losses will result in a shift in business emphasis, leading to a new focus on delivering software solutions to mobile network operators and in servicing its global install base of financial services clients.

724 recently reported a second quarter net loss of $13.1 million. Of $4.5 million in second quarter revenue, $3.4 million came from the sale of services. The company is re-affirming its guidance for modest revenue growth in the quarter.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

CMG introduces SMS mobile banking service

CMG introduces SMS mobile banking service

21 August 2002  |  3533 views  |  0 comments
IBM and paybox go mobile

IBM and paybox go mobile

15 August 2002  |  5565 views  |  0 comments
SmartTrust and Mosaic in mobile payment authentication alliance

SmartTrust and Mosaic in mobile payment authentication alliance

24 July 2002  |  3618 views  |  0 comments
Mobileway and Arcot partner for mobile authentication

Mobileway and Arcot partner for mobile authentication

23 July 2002  |  4182 views  |  0 comments
724 looks to SMS for mobile growth

724 looks to SMS for mobile growth

16 July 2002  |  3899 views  |  0 comments
Banks backing away from mobile investment says Bull

Banks backing away from mobile investment says Bull

03 July 2002  |  5892 views  |  0 comments
BMO scraps wireless banking operation

BMO scraps wireless banking operation

24 June 2002  |  11043 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.niceactimize.comvisit www.fivedegrees.nlvisit www.niceactimize.com

Top topics

Most viewed Most shared
Europe begins Open Banking era in subdued styleEurope begins Open Banking era in subdued...
10482 views comments | 32 tweets | 36 linkedin
Crypto mining threatened by power capacity concernsCrypto mining threatened by power capacity...
10051 views comments | 17 tweets | 18 linkedin
Exchanges call for global fintech standardsExchanges call for global fintech standard...
9738 views comments | 17 tweets | 14 linkedin
Wells Fargo to close 900 branchesWells Fargo to close 900 branches
9634 views comments | 14 tweets | 16 linkedin
KFC introduces Bitcoin BucketKFC introduces Bitcoin Bucket
9192 views comments | 17 tweets | 16 linkedin

Featured job

Competitive base + commission + benefits
London, UK

Find your next job