Fundtech restructures under new COO

Fundtech restructures under new COO

New Jersey-based EFT firm Fundtech is to take an additional $900,000 charge in the fourth quarter following fresh staff cuts incurred as a result of a major restructuring under new chief operating officer Michael Sgroe.

Fundtech says it has consolidated its development, professional services and customer services activities into three global groups to be headed by Sgroe.

Sgroe was previously executive vice president and president, US products and operations. Prior to joining Fundtech in 2000, he worked for Chase Manhattan and Chemical Bank.

The restructuring includes the appointment of Joseph Mazzetti as executive vice president, global sales and marketing.

Fundtech says staff reductions will lower ongoing expenses by $500,000 per quarter beginning Q1 2003.

The company expects to be approximately breakeven on an EBITDA basis, excluding one time charges, which now include a $1 million restructuring charge related to real estate leases, a $900,000 settlement of a previously disclosed dispute and an additional $900,000 of employee-related expenses due to the organisational changes.

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