More than 20 staff have been made redundant at online video company Quickflix, as the company attempts a restructure after suffering an exodus of its board and mounting losses.
But executive chairman Stephen Langsford, who is set to take up the chief executive role in March after current chief Chris Taylor steps down, remains confident, claiming the company has a bright future amidst its restructure.
“I’m completely energised,” he told SmartCompany this morning. “We have a lot of great initiatives in play.”
The 20 redundant staff come from the Quickflix offices in Sydney and Perth. Langsford says while the redundancies are regrettable, they’re also necessary to get the company back on track.
“Quickflix has sustained large losses in 2012, and we’ve had a lot of expenditure as we rolled out big services. Unfortunately, to get the company in a positive position, the layoffs were necessary.”
But the recent bout of layoffs and resignations hasn’t stopped. Marketing officer Liz Katsiotis, who came to the company from Austar, has resigned just six months into the role. Langsford confirmed the move, but says he is still committed to restoring Quickflix to a sustainable position.
“We have HBO’s support, and I have their confirmation of their support for the business,” he says, referencing the resignation of the company’s representative from the Quickflix board.
“What we’ve seen is a message from the capital markets that they would like Quickflix to live within its means.”
Quickflix sustained a $13 million loss in the 2012 financial year, as it spent more money on expensive content negotiations and technical roll-outs. The business has recorded strong subscriber growth, but has never turned a profit.
The recent exodus of board members, including chief executive Chris Taylor, has raised questions over whether the company is in a sustainable position.