Exercise part of '100-day action plan' developed by the company's new management
By WINSTON CHAI
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MORE than 50 MediaRing employees will be axed under a new restructuring plan put forth by the company's new management team.
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'The new management intends to run MediaRing as one large cohesive entity where people work together efficiently towards achieving targeted objectives,' the Singapore-based Internet telephony services company's new management said in an announcement yesterday on its '100-day action plan'.
To achieve this goal, the company is embarking on a 'rationalisation/rightsizing exercise' and 'certain positions became redundant'.
BT understands that the layoff exercise, which affects more than 50 workers, is still in progress.
The affected employees will be given appropriate severance packages.
These retrenchments form part of the '100-day action plan' that was developed after an in-depth operational study by MediaRing's new top brass.
Besides consolidation, market and geographic expansion are also on the list of immediate priorities identified by the leadership team.
This could lead to MediaRing's expansion into new markets such as India and the Middle East, as well as a better integration of its core Internet telephony technology with mobile devices.
'The new management is confident that through execution of these measures and action plan, MediaRing will move forward with rejuvenated energy and vigour towards achieving its targeted goals,' said new CEO Ashok Goyal.
MediaRing saw a sea change within its upper ranks after India's Spice Group - owned by flamboyant billionaire Bhupendra Kumar Modi - bought a $60 million stake in the company and became its largest shareholder last month.
As a result of the buy-in, Mr Modi became MediaRing's new chairman, Mr Goyal the new CEO and Suramya Gupta the chief financial officer.
Mr Modi, his daughter Divya Modi and Mr Goyal were also appointed as directors.
Mr Goyal and Mr Gupta replaced MediaRing's former chief Khaw Kheng Joo and chief financial officer Yeo Siew Chai as their services have been terminated following the stake deal with Spice Group.
Besides stepping down as its CEO, Mr Khaw also resigned as the firm's director, along with Walter Sousa (who was executive chairman) and Thomas Ng.
Koh Boon Hwee's status has also been changed from an executive director to a non-executive non-independent director.
MediaRing is no stranger to corporate mergers and acquisitions in recent years, having been involved since 2006 in a lengthy tussle with Vantage Corp for the control of Nasdaq-listed PacNet.
The protracted battle eventually nearly ended in January 2007 after Vantage sold its PacNet shareholding to US-based Connect Holdings. MediaRing sold its PacNet stake six months later to Connect for US$10 a share.
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