Tandem restructures, 20 jobs cut

Driven by a directive from the new management team in the US, Australian and New Zealand operations of Tandem Computer have restructured. Twenty jobs have been cut from the payroll, in addition to a reduction of the use of contractors in the services branch. South Australian, Western Australian and ACT operations have borne the brunt of the cuts. However, these losses are offset by expanded operations in Sydney, Melbourne, Auckland and Wellington.

According to Graham Frost, Tandem managing director, eight of the staff whose jobs were cut have been redeployed inside the company. Tandem expects to hire another 10 staff in the near future. Despite this shuffling of deck chairs, the company has still managed to cut expenses by 6 per cent, Frost said.

Frost says the company will now focus largely on the telecommunication, retail and finance sectors, particularly in the areas of call centres, decision support and electronic commerce. Despite the cutbacks, Frost says the news out of the Tandem Pacific group is positive.

"For the half year we have grown by 33 per cent, from $33 million up to $44 million. And the prospects for the second half of the year are very good," he said.