News : Quickflix Hoping to Save Money Through Redundancies, Office Closures
Sydney, Australia, April 4, 2016 -- Australian subscription video-on-demand (SVOD) provider Quickflix has announced yet another round of cost-cutting exercises, this time through shuttering its Sydney CBD and Auckland offices and making 15 percent of its staff redundant.
The embattled streaming provider will also "insource" its customer care and support, reduce costs in its Perth office, trim down its delivery network charges, and require one board member to step down.
Executive directors have also agreed to a "substantial reduction" in their salaries as of April 1.
Any part of their salaries exceeding AU$150,000 will also be deferred in payment so as to provide the company with extra cash reserves until it raises a minimum of AU$2 million through the issue of new equity.
"Non-executive director David Sanders has also agreed to step down from the board to reduce the number of directors to the minimum required by the Corporations Act and reduce corporate overheads," the company said in its statement to the Australian Securities Exchange [PDF].
Quickflix had dumped 20 percent of its workforce in October to attain AU$1.7 million per annum in cost savings, with another AU$2.3 million per annum in savings achieved by adjusting the company's content management, tech development and infrastructure, corporate overhead, call centre support, and marketing processes.
The company then successfully restructured debts of over AU$7.5 million by signing deals with several studios.
Posted by Veronica Silva Cusi, news correspondent
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Published: Wednesday, April 6, 2016