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S&T Reduces Jobs

Published: April 7, 2011; 07:55 · (Vindobona)

The ailing Austrian software company has to reduce a quarter of its staff in the current year. There are also problems in Germany and Switzerland.

S&T Reduces Jobs / Picture: © Vindobona.org

Of the 240 employees of S&T, 70 will have to leave the ailing company by May. The restructuring measures are currently underway, after the financial situation was temporarily stabilized in February due to credit grants by the banks.

Edward Bugelnig, CEO of S&T Austria says: "The restructuring measures affect mainly the management levels and the administrative departments of our company", employees in sales and service are not affected. Structures will have to be unraveled, according to sources from the company. High costs are expected however. Mainly employees with high severance payments are being laid off.

Difficulties also threaten the group from Germany. The local subsidiary had to file insolvency due to register last week due to inability to pay and over-indebtedness. The outstanding debts amount to € 15m. The state prosecution is currently investigating three managers for suspected delayed declaration of insolvency. The Swiss subsidiary of S&T is also insolvent since February.