[London, ENGLAND] GlobalNetFinancial.com, Inc., provider of
financial information to many European Web sites, Monday completed an initial corporate restructuring that
has reduced its global workforce by 50 jobs in media.
The move, which represents a 35 percent reduction in the
workforce, has been a drastic measure to reduce annual costs
by US $5 million.
Chief Executive Tom Hodgson said a reorganization of
operations into three distinct business units would
allow GlobalNetFinancial to entertain merger and acquisition
opportunities in many different market sector. Specifically,
he mentioned media, securities, independent financial
advisor and Internet infrastructure sectors as being good
opportunities for expansion.
“We are in discussions with various candidates for industry
consolidation and strategic alliances in each of these areas,
and we are determined to maximize these opportunities,”
said Hodgson.
Referring to the company as “the early-mover within the
pan-European landscape,” Hodgson added that GlobalNetFinancial
has continually worked to reduce overhead costs and expenses.
“We retain a strong balance sheet, and we remain in an excellent
position to implement our growth strategy,” maintained
Hodgson.
Although the message is couched in an upbeat way, the reality of
a 35 percent workforce reduction is scarcely a cause for
rejoicing. As Hodgson indicates, “industry consolidation” is
now the top priority. In the near future, GlobalNetFinancial
can be expected to form closer links with its partners, such
as Freeserve, WorldOnline, BT, Scandinavia Online, and Telewest.
GlobalNet first announced cost efficiencies in January 2001,
looking to save around US $12 million a year. It split its
business into three subsidiaries: GlobalNet Capital Markets
Corporation which runs its brokerage operations, GlobalNet
Media Ltd. operating U.S. and European Web sites, and GlobalNet
Financial Services running its B2B transactional application
services.
For its next step, GlobalNetFinancial will begin to roll
out its money and financial Web sites in a new format,
beginning in April 2001. A single site at www.globalnetiNvest.com
is scheduled to become the gateway to all the company’s
pan-European and North American sites.
Whether the jobs reduction has a negative impact on the quality
of GlobalNetFinancial’s media output remains to be seen. A
minimized reduction in services may be a small price to pay for
prudent financial management that ensures the company’s long-term
future.
