MB Worksoft is looking at retrenching around 14 people as part of a "streamlining process", while some of its subsidiaries will also leave the fold through management buyouts.
The MB Technology e-business subsidiary has also announced a new management structure, with Mark Gilfillan as CEO, concentrating on marketing, strategic focus and client relationships.
Bob Dippenaar will have the position of COO, focusing on sales, technical and operations.
Dippenaar says the 14 redundant positions are as a result of an analysis of the company`s nearly 400 staff, to ensure there are no duplications of functions.
Management admitted that part of the streamlining could include buyouts by some of the e-business companies within the Worksoft fold. Gilfillan confirms that one of the units is actively pursuing funding.
Worksoft was formed two years ago under the leadership of Gilfillan and current chief financial officer Stephan Scheffer. The umbrella organisation strung together a number of companies involved in e-business including CVM, e-Knowledge and Traktion.
Gilfillan says Worksoft took an initial minority shareholding while the rest of the shares where held in trust until the companies met certain conditions.
In the case of CVM, around which there has been much controversy, Gilfillan says the requisite conditions for Worksoft to increase its holding were never met. He says the remaining shares for the company currently reside ostensibly with him through the trust.
The Worksoft structure featured a separate management and administration company, Global Outsourcing Services (GOS), acting as a central clearing account for the Worksoft group.
Parent company MB Technology owns 19% of GOS while Gilfillan owns the remainder. Likewise, Gilfillan has an equity stake in MB Worksoft with MB Technology owning the remaining 95%. However, Dippenaar says this is currently with the MB Technology board for review.
Dippenaar adds that while he can`t comment on the R100 million revenue predicted for Worksoft in MB Technology`s financial results, he can say the group is well on track in terms of operating profit.
Gilfillan says there are internal investigations taking place at CVM, and management is in the process of reviewing what it believes to be financial irregularities at the company.
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