Voice services specialist GDC has laid off approximately 27 staff in the Auckland region, equating to 25% of its staff in the area.
In a statement, GDC says the redundancies were made “in response to poor trading results recorded over the past four months”.
GDC managing director Ross Jenkins says changes in the voice services market, such as the arrival of Cisco IP telephony as a viable technology and the move into voice by systems integrators, contributed to the difficult trading conditions that made the cuts necessary.
Telecom’s entry into that part of the market — which it traditionally hasn’t been a player in — has also had an effect, Jenkins says.
“Telecom management have changed their strategy in the last six months and are now actively selling CPE (customer premises equipment) voice equipment.”
He says there’s no issue with the fact GDC is competing with Telecom in that area but also has a network services maintenance contract with Telecom.
The 120 field staff working on that contract are unaffected by the cuts, which were in senior management and administration, he says.
“We’ve been careful to retain the investment in key technical and delivery staff.”
Jenkins, formerly of Computerland, took over as head of GDC last month from former Microsoft NZ MD Geoff Lawrie, who had held the job since 2003. Lawrie remains a non-executive director.