It doesn't take long to learn that market success does not equal job security - especially in an industry as dynamic and fickle as IT.
Last week, 110 Mincom employees learnt this lesson the hard way, as Australia's most successful software house decided to make them redundant in the name of sharpening the company's competitiveness in the international marketplace.
According to David Merson, Mincom's managing director, the redundancies are only "one component of a corporate action plan" that is being undertaken in preparation for the company's impending initial public offer (IPO).
"We have been growing very rapidly over the last few years and have secured a world leadership role [in the enterprise asset management (EAM) market]. However, our revenue growth has not been as rapid as forecast and we, like our competitors, are facing increased commercial pressures to streamline our operations," Merson said.
Under the plan, Mincom management plans to address the imbalance in the timing of the company's revenue growth and the action necessitates staff cuts.
Merson told ARN the cuts will be spread "across the board", with 55 Australian and 55 international staff losing their jobs within the next three to four weeks.
Upon the program completion, Mincom will have a total of 1200 employees worldwide.
Despite the fact that Mincom took around 500 new employees on board in recent times, Merson is adamant that the company management was forced to act the way it did as "most of its competitors have already done the same".
"There is a general perception of softness in the EAM mar- ketplace and, to some extent, there is a linkage to Y2K, which is causing some uncertainty about the level of business available out there," he said.
"These are the times when you have to look at the ways to make your business more efficient and Mincom has to position itself for the future."
The move coincides with a string of seven- and eight-figure deals, including last week's signing of a $1.5 million contract that will see Mincom implement its MIMS Open Enterprise EAM system for Californian transit authority Omnitrans.