ECnet, the e-commerce business within the PQ Africa group, has discontinued the provision of lines of business which it considers unsustainable over the long-term.
Group executive for e-commerce John Lagaay says that in the region of 60 customers have been affected, and were informed at the end of August that their commercial and hosting services would no longer be provided.
"It`s a commonly known fact that there is little critical mass in the number of e-commerce transactions required to sustain the number of organisations offering the services," says Lagaay.
Although there is the threat of retrenchment, Lagaay says the company has thus far experienced a 60% success rate in placing staff in other business units within PQ Africa, ECnet parent company.
ECnet was established in October 1996, and has been viewed as an industry leader in e-commerce, and the provision of electronic payment gateways for companies and merchants.
The company`s "significant connectivity business" is moving towards being "more than acceptable in profit expectations", Lagaay says, and will remain unaffected by the restructuring.
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