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NETeller Cuts Workforce as Court Date Extended to March |
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Written by Thomas Jensen
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Friday, 16 February 2007
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 Online gambling money transfer giant NETeller PLC said it plans to cut 250 jobs following its withdrawal from the US market. 220 of the jobs will be lost in its operations in Calgary, Canada and a additional 30 jobs will be lost in its UK office. The job cuts will reduce NETeller's total workforce down to 425 from a peak of 1,000 last year.
NETeller, whose main customers are online gambling players and operators, pulled out of the US market last month after two of its founders Stephen Lawrence and John Lefebvre were arrested as part of a the United States Justice Department’s witch hunt against the online gambling industry. The US market represented over 84 percent of NETeller’s total revenues.
“The events of the past months have led to challenging times for the group, and the board has taken these measures to ensure the group has a sustainable business going forward,” stated NETeller chief executive Ron Martin.
In an announcement made yesterday, the US Attorney’s Office for the Southern District of New York decided to extend the deadline on whether to indict Stephen Lawrence and John Lefebvre on money laundering & tax evasion charges. The new court date will be March 16, 2007.
Earlier in the month, the Feds confiscated $55 million of NETeller’s funds that were located in US financial institutions and these funds are being held as “evidence” for the case against Lawrence and Lefebrve. Many US based gamblers are still waiting to receive payouts from NETeller and this latest extension will mean players will be waiting at least an additional month before they see a penny.
Point-Spreads.com will continue to monitor this story as it unfolds.
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Last Updated ( Friday, 16 February 2007 )
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