Baltimore to axe up to 20 local jobs

Baltimore Technologies will cut 20 jobs in Australia as part of the company's restructuring plans announced this week.

Despite continued growth in the Asia-Pacific region, the Dublin-based security software vendor has reported unaudited second-quarter losses of $US33.3 million and the reduction of a further 220 staff worldwide.

In a statement, the company described its second-quarter results as "not acceptable" and Baltimore Australia managing director John Palfreyman told Computerworld that "up to 20 R&D jobs in Sydney will go in coming months".

He said regional branch offices in Hong Kong, Singapore, Korea, Melbourne and Canberra will remain open and there will be no impact on customer support.

"Local demand for our products is still strong, particularly in banking and finance; we are set to announce a significant deal in Singapore in coming weeks," Palfreyman said.

"We are currently recruiting about 15 staff so those being re-deployed can apply. While we are re-deploying some of our R&D resources we have a strong customer base in the region to maintain business as usual."

In addition to staff layoffs, Baltimore's restructuring plans include re-organising its sales force, delisting its Nasdaq-traded stock and spinning off the company's content security business.

The value of savings generated by the restructuring plans combined with proceeds from its divestment plans will total $US101.3 million over the next year.

By delisting its Nasdaq-traded stock and maintaining only an existing listing on the London Stock Exchange, Baltimore expects to save $US2.8 million per year, a company statement said.

The restructuring is the second time in three months Baltimore has laid off staff in a bid to reduce costs. In May, the company laid off 18 per cent of its workforce.

Sumner Lemon contributed to this article.

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