Fundtech, the provider of global electronic payments, settlement, and cash management solutions, is cutting costs and reorganising its management.
Staff reductions will lower expenses by $500,000 per quarter, with effect from Q1 2003. All development and professional services and customer services activities are being consolidated into three global groups under the leadership of Michael Sgroe, the newly-appointed Chief Operating Officer. In another significant management change, Joseph P. Mazzetti becomes Executive Vice President of Global Sales and Marketing.
FundTech confirmed earlier indications that it will break even (on an EBITDA basis) before exceptional charges in the fourth quarter of 2002. The charges now include a previously announced $1 million restructuring charge related to real estate lease obligations, a $900,000 settlement of a dispute, plus an additional $900,000 of employee-related expenses in conjunction with the new organizational changes.
“Globalization has reshaped the way we look at our company, customers products and services,” says Reuven Ben Menachem, Chairman and CEO of Fundtech. “As we continue to evolve from a company focused on product development to one that delivers high quality, reliable solutions to banks around the world, we need to align our operations to better serve a growing global customer base. I am confident that Fundtech will continue to prosper under this structure and our leadership team.”
Prior to his promotion to Chief Operating Officer, Sgroe was Executive Vice President and President, U.S. Products and Operations. Prior to joining Fundtech in 2000, he spent 16 years at Chase Manhattan and Chemical Bank, with responsibility for delivering high-performance solutions for the funds transfer and cash management businesses of the banks.
“This is a challenging market and I look forward to the opportunity of developing Fundtech’s world-class financial technology business,” says Sgroe. “With 750 clients worldwide and the completion of several new major products, we are well positioned to execute our strategy.”