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Damovo takes axe to senior staff

Damovo takes axe to senior staff

Damovo Australia, a company formed out of the direct sales and services arm of Ericsson, has made 13 senior staff redundant in a company-wide organisational restructure.

Damovo was set up on a global basis after it was spun off by Ericsson, a 20 per cent shareholder in the venture, and Apax Partners Funds, which has a controlling interest of 80 per cent. The intention was for Damovo to specialise in the implementation of managed services, contact centre solutions, voice switching, mobility solutions and both data and voice/data networks.

Little over 12 months later, the company is now realigning itself as a professional services organisation rather than an implementation partner based on specific lines of business, according to Greg McAloney, general manager of human resources at Damovo Australia.

"Subsequently, we will be doing more consulting work rather than implementation," he said.

Damovo employed 180 staff upon launching in 2001 and intended to double its staff numbers within 12 months. The company now employs 300 staff.

The 13 staff made redundant consist of both professional services and administrative staff, but include such senior staff as general managers of the company's former lines of business.

The restructure was ratified by management last week, according to McAloney. Rob Schwarz, promoted from sales and solutions manager to the new position of managing director little over two months ago, was overseas and thus unable to comment. Marketing manager Nancy De Losa is on leave.

McAloney quashed speculation that the company had been asked to slash its headcount and revise its budget by its British-based financiers, after its initial 12 months had failed to meet their expectations.

"The restructure is aimed at presenting a single face to the customer," McAloney said. "Each time the sales force comes back from talks with a potential client, they will not have to work with the managers of several lines of business to put the solution together. Instead, we will provide a united front and a single point of contact."

The services company's former parent, Ericsson, has made recent cuts of its own in Australia, axing its regional research and development centre (AsiaPacificLab) in Melbourne and Sydney, leaving 450 staff out of work.


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