Avaloq said it will cut as many as 60 jobs, after two partners severed long-term ties with the Swiss banking software firm.
The Zurich-based software firm said it will cut 3 percent of its workforce, or as many as 60 employees. The cuts will come from Avaloq's Ticino-based sourcing division, which suffered a setback when two partners quit long-term contracts.
Banca della Svizzera Italiana, or BSI, withdrew when it was bought by EFG International last year, and Generali also gave notice on an information technology outsourcing contact with the Swiss firm.
«We will have overcapacity in Avaloq's service center. Information technology operations and banking operations are hardest-hit by the shortfall in revenue,» Avaloq said.
On Track in 2017
The firm, which is on track for an initial public offering from 2020, said the end of sourcing contracts with BSI and with Generali would have no effect on the wider group, and that it stands behind its Swiss service center and other sites.
Avaloq said it is on track with its goals for this year. The company recently released detailed half-year results for the first time, offsetting a feeble 3 percent rise in sales with major cost cuts. The figures also showed that Avaloq's substantial investment last year in developing and taking over outsourcing centers had hit profits.
