ASG axes staff; expects net savings of $2.1m

CFO also resigns
ASG axes staff; expects net savings of $2.1m

ASG Limited (ASX: ASZ) has announced plans to cut its contractor and employee numbers in an attempt at realigning its initiatives for operational efficiency across its lines of business and corporate overhead functions.

The company expects an estimated net savings of $2.1 million for FY2013, about $8 million on an annualised basis, as a result of the 50 full-time equivalents (FTEs) and overhead costs being taken out of the business.

It also announced the resignation of its chief financial officer, Stuart Whipp, who has been a member of the executive team since January 2012.

ASG said, in a statement, that Whipp has resigned with “immediate effect, to pursue other interests”.

Its chief operating officer, Dean Langenbach, will assume oversight of finance and accounting activities till the company finds a replacement for Whipp.

According to ASG chief executive, Geoff Lewis, the changes were required in order to focus the business.

He claimed its approach to the implementation of the necessary changes within ASG and its business development activities to support a dual strategy of new world computing and traditional managed services “has been too ambitious and needs to be adjusted”.

“Those areas of our sales initiatives, which have not been successful, have been reassessed. The initiatives we are announcing today will increase the strategic focus of the business and create a more disciplined and economical approach in relation to bidding for new contracts,” he said.

The company also recently received a non-binding takeover offer from an undisclosed entity for about 172 million shares, according to a filing with the Australian Stock Exchange.

More about: ASG, Australian Stock Exchange
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