Myratech slashes staff numbers

E-COMMERCE firm Myratech.net is to cut staff by a third as part of 'radical action' to conserve dwindling funds. Senior managers' salaries reduced will be reduced and the company's board cut from seven to three.

The moves, which will see staff numbers fall to around 30, comes after Birmingham-based Myratech said trading conditions and orders had worsened materially since it issued its half-year results on 11 September. Net cash balances have shrunk from £1.2m at the end of June to approximately £700,000.

Myratech floated on the Alternative Investment Market in April 2000 with a value of £35m. It is now valued at just over £1.2m after the shares fell 40% to 3p in the wake of the announcement.

Among those taking a pay cut is Mark Abrams, who bought the company in 1989 from his maths teacher for £18,000 when it was part of the computer department of King Edward VI Five Ways School in Birmingham. The company developed into a reseller of products for software group Sage but also offers a range of other e-commerce services.

Abrams is currently managing director but will now take on a broader operational role as the one remaining executive member of the board.