Twenty-one Com Tech employees have lost their jobs as a result of a slow down in new-economies, according to the companies online general manager David Bowie.
The retrenchments have seen Com Tech's online division cut down from 241 to 220 staff, in a move to consolidate the group's skills base.
The employees were given their marching orders, as Com Tech makes a return to high level integration and restricted its coverage of smaller "new economy" customers. According to Bowie, Com Tech's integration services had been sought out by these new markets as they found themselves cashed up earlier this year.
"As the money invested in the new economy begins to dry up so to has the amount they can invest in integration. We are really returning to our traditional markets, the larger corporate players," Bowie said.
The skills consolidation will coincide with a focus on the integration of e-commerce application modules rather than software development. Most of the retrenched staff were software developers with a hands-on technical skills base.
"We plan to work with our vendor partners to roll out solutions rather than focussing on the development side," Bowie said.
Bowie believes a time which is traditionally slow has been exacerbated by constriction in demand is symptomatic of an overall slow down in the over-hyped new economy that found itself cashed up during the first half of this year. However, he also said the recent retrenchments would leave the group well placed to face the new year.
"This is definitely the last of the retrenchments we will see for a while," Bowie said. "We have prepared ourselves for a continued slow economy throughout January although we do expect things to pick up in the new year as traditional bricks and mortar come invest in online services."