ASX-listed Jumbuck Entertainment, a provider of social media mobile applications, has announced a restructuring of its operations that will include a larger than a 26 per cent reduction in operating costs through staff cuts and other resources supporting its traditional mobile carrier-based chat business lines.
The move will allow the Melbourne-based company to better align its resources around leveraging the company’s recent traction in high-growth market segments, Jumbuck said in an announcement with the ASX.
The company employs about 18 employees in Australia, according to Jumbuck company secretary, Angelo Tsagarakis. The reduction in operating expenses will result in about $2 million in annualised cost savings. He would not comment on how many staff would be affected.
Jumbuck’s “go-forward” strategy is focused squarely on opportunities to deploy its technology in the rapidly evolving social media. The core of its strategy will be its Heroes platform, which launched earlier this year with its deployment by the Rabo Direct Pro12 Rugby competition.
These revenue-generating products will continue to be supported while the company consolidates and streamlines its consumer-chat portfolio, the company said.
“We have evolved our strategy based on the dynamics reshaping how consumers and organisations use social media across mobile and web channels. As such, we need to re-tool our operations to align with our long-term strategic vision. This restructuring will allow us to do that by reducing non-strategic costs and resources, and focusing intently on growth opportunities,” Jumbuck chairman, Harvey Parker, said.
“Our initial success with the Heroes platform reconfirms our confidence in this long-term strategic direction, and we are committed to investing strategically to develop that business further.”