IT integrator Praxa plans to lay off a number of its staff as part of a restructure and faces a possible buyout, according to an internal memo obtained by Computerworld.
Staff were advised that some positions from each business unit would be made redundant and In the memo, signed by Colin Holgate, CEO, said an unnamed "potential" purchaser had commenced due diligence.
While the company did not return Computerworld's calls requesting confirmation of the cuts, in a prepared statement it confirmed it is planning an internal restructure to consolidate its core business operations. The statement did not confirm the number of cuts or name any parties in the possible sale.
A spokesperson for Praxa said: "Discussions have been held with a number of parties regarding a potential further partnership with Praxa, but it is not far enough in the discussions for anything to be confirmed. If any of these discussions progress to an agreement stage, an announcement will be made."
An internal source revealed that one possible party is AST, a South African information and communication technology services company (www.ast.co.za). AST has been visiting Praxa client sites.
In its prepared statement for Computerworld, Praxa said the restructuring will see the re-focus of unprofitable operations and associated overheads and will have no impact on customer delivery.
CEO Colin Holgate said: "While any restructuring is difficult for all concerned, these changes are necessary to place Praxa on a firm foundation for the future. Our core business focus remains intact, particularly our highly profitable partner accounts business."
Praxa's parent company, ManTech is undergoing corporate changes as it focuses on its core businesses and Praxa has found itself outside the core.
According to the internal memo, some areas of Praxa's investment are not producing desired returns, which is limiting the company's ability to invest in areas that are delivering. The lack of returns led to the decision to restructure the business in a way to capitalise on the company's strengths.
In the memo, Holgate said he would advise all staff if their position is being considered for redundancy and those affected will be given the chance to discuss their proposed redundancy with nominated management before any final decisions are taken.