LibertyOne-owned web integration company Zivo is facing an uncertain future following the resignation last week of five key directors from the organisation's headquarters in Sydney.
Industry rumours suggest that some of Zivo's staff may face retrenchment this week.
Robert Silver, NSW general manager; Jason Davey, international creative director; Erica Carroll, client services director; Michael Chanter, production director; and Tess Dryza, creative director, resigned together last week in a mass management departure. The directors will remain at Zivo for four weeks.
According to sources, the directors chose to resign after refusing to follow an order from management to fire staff. Many of the staff had been employed during a recent hiring blitz by LibertyOne, sources said.
Staff in Zivo's Sydney office were advised of the departures earlier this week. Additionally, many were warned they may face retrenchment, sources told TheWire.
LibertyOne, whose stock was suspended from the ASX yesterday (July 25) afternoon pending an announcement today, said last week that Nasdaq-listed CyberSentry had offered to swap seven of its shares for each of LibertyOne's.
According to a statement made by LibertyOne today, CyberSentry first considered making an offer for the internet company in May this year.
LibertyOne was not available for comment before press time.