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Volante Group cuts staff

Volante Group cuts staff

Despite insider reports that Volante has pared 25 staff from its standalone IT recruitment division Affinity, the company says only nine staff have been let go on the back of its recent merger with IT recruitment firm Best People.

Volante claims the merger with Best People, acquired in May for $1.5 million, created overlaps in sales and administration roles.

The remaining operation of 25 to 30 staff will be merged with Netbridge, Volante's services and integration arm, and will come under the supervision of Netbridge's managing director, David Evans.

Evans said the market for recruitment on the whole is difficult at the moment and Volante has made the necessary tough decisions in light of that. He adds the redundancies in no way reflect the strength of the rest of the Volante Group.

Affinity will retain its own unit name and operate on a separate balance sheet to Netbridge, says Evans.

As part of the Best People purchase agreement, 50 per cent of the money is tied to performance factors. Volante group manager Allan Bracken said they still have 18 months to meet this goal.

At the time of purchase, Best People was pitted to add 60 per cent to Affinity's bottom line. Evans said he couldn't comment on whether this was still a feasible projection, however, he expects the unit to add significantly to Netbridge's bottom line.

Affinity boss Daniel Shepard is said to have resigned from his position just weeks before the staff cuts. Best People founder Tony Nash will continue to head up Affinity's NSW division.


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