Guvera confirms local redundancies, downplays employee concerns about entitlements

Troubled music streaming service Guvera has confirmed it has made just under 30 local employees redundant in the fallout of the company this week placing two of its subsidiaries into voluntary administration following a decision by the Australian Securities Exchange (ASX) to not list the company.

Guvera logo

Guvera would not specify the number of redundancies but downplayed employee concerns about receiving entitlements, claiming a number of employees had been offered new positions with “related entities” as the company seeks new funding to survive.

“Employees of Guvera Services Pty Ltd were terminated on Monday, June 27,” said a Guvera spokesman. “A large portion of employees have been offered employment with another entity in order to continue servicing parent company Guvera Limited. Employee entitlements for terminated Guvera Services Pty Ltd employees will be managed by appointed administrator Deloitte.”

Earlier this month the ASX used its discretionary powers to refuse to list the entity, a decision which forced a strategic review of its business leading to the decision to focus on the emerging markets.

The company had been seeking $80m-100m to to further grow the business, with its prospectus putting its market capitalisation at a massive $588m despite losses reported of more than $166m in the last two-and-half years.

The streaming company has said that it “intends to continue to operate in its home market of Australia” and in the short term will “dedicate its focus” to India, Indonesia and the United Arab Emirates with a longer term objective of investigating opportunities in the Philippines and Vietnam.


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