ASX-listed software and services company Powerlan has had to downsize its systems integration staff by 11, with all retrenched staff being from its Melbourne office.
But Powerlan CEO Theo Baker was alarmed by recent press reports suggesting Powerlan was considering closing down its Melbourne office.
"We have doubled our staff in Melbourne over the last 12 months," he said. "Is our systems integration business doing it tough? Absolutely. Are we closing down in Melbourne? No way."
Baker said all systems integration businesses in Australia were facing hardships along with the vendors they support. "It's regrettable, but we have to take action so the business can keep performing."
The 11 staff represent a small dent in Powerlan's 1100 staff, 800 of which work in Australia. About half of these work in the company's systems integration business. "Our business is not reliant so much on systems integration anymore," he said. "It only makes up 20 per cent of our products, the balance is from the sale of our proprietary products."