Quickflix to axe Sydney and Auckland offices and staff as founder gives himself a pay cut
The founder of struggling video streaming company Quickflix has cut his executive’s salaries as the company prepares to lay off a further 15% of its workforce, as it seeks yet more cash from investors.
The Perth-based operation is also axing its Sydney CBD and Auckland offices, while CEO Stephen Langsford has slashed his salary by $80,000 to $200,000, but will defer $150,000 of that until the company raises another $2m in a capital raising.
Quickflix has been in a trading halt on the Australian Securities Exchange (ASX:QFX) since the middle of 2015, with the company making savings of $4m per annum so far by laying off staff and restructuring deals with TV and movie studios.
Under the latest cost saving plans the company said it will reduce 15% of its staff, including costs at its Perth headquarters, stating: “These additional ongoing savings amount to over $1m per annum and are not expected to have a significant impact on core day to day services.”
Chief finance officer Simon Hodge has also had a pay cut from $250,000 to $170,000 per year including superannuation, but will also not get $150,000 of that until certain goals are met.
Both men stand to pocket 1% of the $2m if and when it is raised, and both will receive a bonus of the company manages two consecutive months of positive EBIT. They can also both be handed yet more shares in the company if it manages to resume trading on the ASX by October 2017.
In its February update the company called on rivals Stan to restructure preference shares it held in the company which Quickflix claimed made it unattractive for investors and harder to raise money. It is not thought that has come to fruition.
It has also recently signalled it will move away from streaming given the competition from the likes of Stan, Presto and Netflix, and move back to the transactional appraoch around DVD rentals and on-demand movies and TV shows.
Alex Hayes
1. Enough already
2. NO investor this side of sanity is going to give them money
3. Enough already
Whilst I appreciate the never say die attitude, there’s a story about these guys every couple weeks. Laying off staff, raising capital etc.
Someone needs to take this company behind the barn Old Yeller style.
User ID not verified.
“both will receive a bonus of the company manages two consecutive months of positive EBIT.”
wow what an exciting place to work
User ID not verified.
I know it’s people’s lives – but I am always engaged by articles on this soap opera.
User ID not verified.
Has anyone ever had someone say to them “you really need to try quicklfix?” No. That should tell you all you need to know.
User ID not verified.
I’d rather invest in a Russian start up, headquartered in Mozambique, issuing IOU’s on table napkins
User ID not verified.
Rearranging the deck chairs on the Titanic once again.
User ID not verified.
Please make it stop.
User ID not verified.
Close it down.
Now.
User ID not verified.
@1 – Enough Already
Don’t be so certain regarding investment, some may look at this as a nice way end up with a nice ongoing tax credit concession. Investment isn’t always about growth.
User ID not verified.
I’ve had some dealings with management at Quickflix and would never do business with them again. They’ve had years to reinvent themselves but instead put their energy (and money) into lobbying legislators to quash the competition. Arrogance by management and an inability to read the play in an agile industry has held this company back. I can’t imagine how they could recover at this point. Good luck to the staff who are undoubtably going through a tough time.
User ID not verified.
Because people losing their jobs is something to gloat about.
User ID not verified.
DVD sales are declining rapidly and VOD is struggling to replace it. Distributors will close down this year and in coming years. Only 2-3 VOD companies will survive. The rest will go broke.
User ID not verified.
@Ben Ross.
Do you have a prospectus for that nice little earner? I’ll be moving some moolah out of Panama real soon.
User ID not verified.
What is a Quickflix??
User ID not verified.
So these guys have been pulling 250k for NOT making a profit for how many years?
Plus a bonus when they raise cash…?
Plus a bonus if they can make a profit for 2 months ?
Plus a bonus if they manage to re list?
What a piss take!
User ID not verified.